Alibaba Group recently announced the approval of upsizing its share buyback program to US$25 billion from an earlier US$15 billion.
The announcement caused its shares to increase more than 11% on Tuesday, restoring some of the investors' confidence.
Alibaba's shares listed in both Hong Kong and New York, declined to an all-time low last week due to its development and growth severely impacted by China's active regulatory crackdown on local tech giants.
The China-based e-commerce giant mentioned that the buyback program will run for two years through March 2024.
"Alibaba's stock price does not fairly reflect the company's value given our robust financial health and expansion plans," Deputy Chief Financial Officer of Alibaba Group, Toby Xu said in a statement.
Key Highlights
- Alibaba has purchased a total of 56.2 million American depositary shares for an estimated US$9.2 billion as part of the previously announced repurchase program, as of March 18.
- Alibaba shares rose 11.2% following the buyback announcement to close at HKD 110.2, after tumbling to HKD 71.25 last Tuesday.
- Alibaba's US and Hong Kong-listed shares have lost more than half of their value in the past year.
- Alibaba is not the only tech company that faced regulatory crackdowns in China; the likes of Tencent and Baidu have been harshly affected as well.
- The appointment of Weijian Shan, chief executive officer of investment group PAG, has been announced by Alibaba as an independent director to its board and also serve on the board’s audit committee, effective 31 March.
