The share price of Srinanaporn Marketing Public Company Limited (SET: SNNP) rose 6.20% to THB 12.00 per share in the morning session on Wednesday following the announcement of the company’s share repurchase program from 23 December 2024 to 20 June 2025.
SNNP announced on 17 December that the Board of Directors Meeting of SNNP has resolved to approve the Share Repurchase Program for Financial Management (Treasury Stock) in the amount not exceeding Baht 640 million and the number of the shares not exceeding 40,000,000 shares or equivalent to 4.17 percent, which are not exceeding 10 percent of the issued shares.
Criteria used to determine the repurchase price must consider the average market price during the last 30 days prior to the date on which the Company discloses the information of share repurchase. The repurchase price shall not exceed 115 percent of the average closing price in the period of 5 consecutive business days prior to the share repurchase date. In this regard, the average share price for the past 30 consecutive business days from 4 November 2024 to 17 December 2024, was Baht 11.94 per share.
SNNP noted that as of 30 September 2024, the Company has cash and cash equivalents to Baht 67 million. The Company expects to generate cash flows from operations of separate financial statements in the first half of the year 2025 in the amount of Baht 890 million. Therefore, the Company has the ability to repay the debts due and payable within the next 6 months from the date of share repurchase under the project.
Additionally, this repurchase program aims to ensure the company’s excess liquidity management is conducted for the utmost benefit. Meanwhile, it is to increase the Return on Equity (ROE) ratio and Earnings per Share (EPS) ratio. Also, the company aims to assure investors or shareholders of the Company of its capability to generate future profit, as well as to build trustworthiness of the company’s financial status.
