Phoenix Petroleum Philippines Inc. is keeping up with its buyback program of P250 million worth of common shares to increase the company’s stock price.
The company’s board approved on May 11 a buy-back share program of up to 3.4 percent of Phoenix Petroleum’s current market capitalization. The company has bought back 5.65 million common shares worth P34.15 million since its clearance.
“The buyback program is intended to buy back shares at prices management feels is materially below its true value,” Phoenix Petroleum vice president for external affairs Raymond Zorilla said in a text message.
Each purchase will be disclosed to the Philippine Stock Exchange.
“The program is basically designed to boost up and/or improve the shareholders value through the repurchase of the shares whenever the same is trading at a value lower than its actual valuation.”
The company’s shares have increased by 22.6 percent from P5.00 per share since the buy-back program began on May 31.