NASDAQ-listed Sino-Global Shipping America has begun a stock repurchase programme in which the China-backed company plans to spend up to $100,000 buying back its shares during the fourth quarter 2015.
After the final quarter closes on December 31, Sino-Global said it will continue to repurchase stock using between 10% and 15% of the most recent quarter’s net income.
“The repurchase program is expected to terminate twelve months after its commencement on October 11, 2015,” the company said today. The shares will be acquired “from time to time” in the open market.
“We believe that Sino-Global’s current stock price does not reflect the company’s true value,” said Lei Cao, CEO of Sino-Global.
“This share repurchase program reconfirms our confidence in and commitment to Sino-Global’s future. As the company continues to build its logistics network and expand its service platform, the share repurchase program should position us well for long-term growth, as we remain focused on returning value to our shareholders,” he continued.
Sino-Global’s stock is currently trading at $0.8979 per share, which would enable the company to repurchase 112,359 shares or 1.52% of its outstanding stock with its $100,000 budget.
Sino-Global has 7.4m shares outstanding, of which 62.13% are owned by insiders at the company and 0.5% are owned by institutions.
Chinese shipowner Weixiong Yang purchased a 5.97% stake (500,000 shares) in Sino-Global in July.
In April, Hong Kong-based Rong Yao International Shipping received a tranche of 1.2m shares (then worth $2.2m) as a partial consideration for the sale of its small oil/chemical tanker Rong Zhou (8,818 dwt, built 2010), giving the Chinese company a 16.21% stake in Sino-Global.