FAST NEWS: Onewo announces HK$632 million share repurchase
The latest: Onewo Inc. (2602.HK) on Tuesday announced a plan to repurchase up to HK$632 million ($81 million) worth of its shares in the open market.
Looking up: Such share repurchases are meant to signal management’s optimism about the company’s prospects, as well as its belief that the shares are undervalued.
Take Note: The actual repurchase price will be determined by market conditions. The company does not guarantee that it will actually spend all the allocated money to buy back shares.
Digging Deeper: Onewo is a property management company spun off and separately listed by China Vanke (2202.HK; 000002.SZ), one of China’s leading developers. The company raised just HK$5.6 billion from its Hong Kong listing in September last year, far below its rumored target of HK$15.6 billion, as the country’s property market was already starting to show signs of stress after years of strong growth. Its shares have been sluggish in their first year of trading.
Market Reaction: Onewo’s shares closed up 4.1% at HK$22.7 by the midday break on Wednesday, 54% below its IPO price of HK$49.35 last year.
Translation by A. Au
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