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Japanese conglomerate SoftBank Group Corp. saw its shares soar on Tuesday after it announced a 1-trillion yen buyback program to mark its second-biggest to date, Reuters reported.
The company announced the buyback amid the release of its quarterly earnings that indicated a loss due to the decline in the shares of its portfolio firms amid Beijing’s regulatory crackdown.
The latest buyback is the second-largest of the company after it bought back 2.5-trillion yen worth of shares when the COVID-19 pandemic was at its peak last year.
Shares of the company gained 10.5% on Tuesday to an 11-month high of 1,808 yen, bringing its market capitalization over $100 billion. Trading volume was more than double the 30-day average.
The latest repurchase period will run to November 8 next year, as the group said it could take longer than the purchases it recorded in 2020. The buyback has been expected by the market for months.
SoftBank recorded 5 trillion yen in cash and cash equivalents at the end of September, posting a 9% increase from the previous six months. SFTBY is up 9.02%.
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