Tencent to buy back up to 10% of its shares

The Hong Kong-listed tech behemoth hopes the repurchase would push up its stock price.

Image credit to 123rf.com.cn.

Tencent will hold the annual general meeting on May 15 with a motion to buy back up to 10% of its shares, the company has announced today.

Its directors would “repurchase a maximum of 952,042,569 Shares, which represent 10% of the total number of issued Shares” which could “result in an increase in net assets and or earnings per Share”, the Chinese tech behemoth said in its filing to the Hong Kong Stock Exchange.

Tencent’s share price peaked last March at HKD 475.6 (USD 60.6) but has since slid to more than HKD 100. Its price currently stands at HKD 365 (USD 46.5).

The Shenzhen-based company recorded USD 45.56 billion annual revenue in 2018, up 32% from the previous year. Its net profit has also gone up 19% to USD 11.3 billion.