Nanofilm Technologies International, facing a wave of downgrades from analysts from its earnings surprise, has spent $12.6 million to buy back more than 3 million shares these two days.
Following the company’s 1HFY2021 3.1% y-o-y earnings drop reported last Friday, Aug 13, investors on Monday, Aug 16, sold down Nanofilm’s shares by a third from Aug 13’s closing price of $5.97.
On Aug 16, it spent nearly $6.8 million to scoop up 1.55 million shares at between $4.21 and $4.52 each.
The selling continued earlier today, Aug 17, sending the share price down to as low as $3.80 before closing for the day at $3.82, down 10.12% for the day.
In an SGX filing after market closed, the company said it bought back 1,497,000 shares at between $3.81 and $4.07, spending a total of more than $5.8 million.
Under its current mandate, Nanofilm can buy back up to nearly 66.2 million shares.
The company, which listed last October, had never bought back shares prior to this.
From its IPO price of $2.59, it more than doubled to hit a peak of $6.67 in late July, with investors baking in strong growth expectations.
Sentiment towards the company was also hurt by the resignations of its COO Ricky Tan and CEO Lee Liang Huang less than two months after each other.
In its earnings call fronted by the two deputy CEOs, the company maintains it will see a better second half.
The company’s founder, executive chairman and interim CEO Shi Xu holds around 54% of the shares.
See also: Analysts downgrade Nanofilm, cut TP on weak 1H21 results, vacant COO role
