Cebu Air Inc’s board of directors approved the creation and implementation of a share buy-back programme involving USD46.3 million (PHP2 billion), approximately 4.22% of the company’s current market capitalisation. The programme hopes to stem the price decline of its shares on the Philippine Stock Exchange.
The share buy-back will not involve any active and widespread solicitation from the stockholders and will be implemented in the open market through the trading facilities of the Philippine Stock Exchange
The carrier listed in late Oct-2011. Shares in the carrier jumped 10.1% in trading on 01-Mar-2011.
Tiger Airways announced that of the proceeds raised from the company’s initial public offering, USD2.9 million (SGD3.7 million) has been used to repay outstanding short-term loans and USD17.2 million (SGD21.9 million) has been utilised to fund the acquisition of aircraft and associated pre-delivery payments. The company will have disbursed an aggregate of USD164 million (SGD208.9 million) of the net proceeds of the IPO.
Selected PEA daily share price movements (% change): 2-Mar-2011