Zip Co jumps on share buyback plan
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More news: Shares in Zip Co jumped nearly 10% to $1.31 in early trading on the ASX after the buy now, pay later lender announced it would launch an up to $50 million share buyback from 23 April.
The on-market buy-back program, which will be open for up to 12 months, reflects the strength of the Zip balance sheet, the continued delivery of operating cash flows and Zip’s outlook for future profitable growth, it said.
Zip Co flags $50m share buyback
The news: Buy now pay later lender Zip Co has announced an up to $50 million share buyback to reflect the strength of its balance sheet.
The numbers: The company said the on-market buyback program is set to start on 23 April, for a period of up to 12 months. It will be limited to 10% of issued capital and prices paid for shares purchased will be no more than 5% above the volume weighted average price of Zip shares over the five trading days prior to the purchase.
The context: The lender said the announcement reflects the strength of the Zip balance sheet, the continued delivery of operating cash flows and Zip’s outlook for future profitable growth.
“We continue to execute on our strategic priorities with the group generating strong operating cashflows and maintaining balance sheet strength. The buy-back program we have announced today is consistent with our capital management framework and focuses on maximising shareholder returns,” Managing Director Cynthia Scott said.
Zip also said it will bring forward the release of its third quarter results to 16 April.
The source: ASX
