SM’s record-breaking P60 billion share buyback program has reignited discussions on share repurchases, their impact on investors, and how companies use them to drive shareholder value.
SM Prime Holdings (SMPH), the Sy-led property giant, has launched its first share buyback in 22 years, with CEO Jeffrey Lim pointing to the steep drop in the share price as a sign of undervaluation.
Since the coronavirus pandemic pummeled markets over four years ago, company boards have been quick to take advantage of their own firms’ depressed prices on the bourse to reacquire shares that they believe are “undervalued”.