China Literature, the country’s largest online publisher and a subsidiary of Tencent, announced yesterday its plan to buy back up to 10% of its shares with no more than HKD 500 million (USD 63.8 million).
The buyback plan was approved by the shareholders at the company’s annual general meeting on May 17, according to the company’s latest filing with the Stock Exchange of Hong Kong. “The Board believes that the value of the Shares traded on-market is undervalued,” the filling read.
China Literature, whose founder envisions it as a potential Chinese equivalent of Marvel, has seen its stock price drop from HKD 55 (USD 9.28) at its debut to HKD 31 (USD 3.78).
The company booked RMB 5.04 billion (US$734.1 million) in revenue in 2018, a 23% annual increase from the previous year.