Helia shares surge on $100m buyback

The news: Shares in Helia Group spiked on the ASX after the mortgage insurance provider announced its intention to commence an on-market share buyback of up to $100 million.

The numbers: Based on Helia's closing share price of $3.70 on Thursday, the buyback would represent a reduction of 9.3% of the company's issued share capital, or around 27 million ordinary shares.

Helia shares were up 5.4% at $3.90 in early trading on the ASX.

The context: Helia, which provides mortgage insurance for major lenders such as Commonwealth Bank, Bank of Queensland, Bendigo Bank, ING, and Great Southern Bank, said the total number of shares to be purchased by the company in the buyback will depend on business and market conditions, the prevailing share price, market volumes and other considerations.