HRnetGroup has on June 13 bought 200,000 shares at 76.43 cents each. On June 15, it paid 77.7 cents each for another 136,300 shares. This follows the company’s announcement before the market opened on June 13 that it has launched a $30 million programme to buy its own shares “when such shares may be undervalued due to market conditions”. HRnetGroup’s share price closed at 77 cents on June 13, up 4.5% for the day, and down 3.75% year to date.
With the standard 10% cap on annual buybacks, HRnetGroup can potentially buy back up to 100.38 million shares, and the buying can take up to a year or so. According to the company, the shares will be held as treasury shares and can be either used for employee share plans, or to help fund potential mergers and acquisitions.
HRnetGroup is seen by analysts as having a very asset-light yet cashed-up balance sheet. It enjoys a strong business moat because of its extensive network across the region, matching the large corporates hiring, and job-seekers.