Hongkong Land Holdings surged as much as 9.76% thus far today, following news that it plans to spend up to US$500 million in share buy backs.
As at 9.43 am, the shares hit US$4.61, from yesterday's close of US$4.20.
Especially so among other real estate firms, Hongkong Land's share price has been persistently trading at less than a third of its NAV.
See also: CGS-CIMB keeps 'add' call on Hongkong Land, sees performance stabilising
As at June 30, its NAV was US$14.75, down slightly from US$15.30 as at June 30 2020.
The purpose of the buy back programme, which will last till Dec 31 2022, is to reduce the capital of the company, which owns large tracts of prime properties in both Hong Kong, Singapore, and across the region.
As the holding of treasury shares is not provided for in the company’s constitution, any shares which are repurchased by the company will be cancelled.
see also: Hongkong Land to spend up to US$500 million in share buybacks
