This article was originally published on Friday, 16 August 2019 at 14:50 SGT; it has since been updated to add an additional share buyback.
Yangzijiang Shipbuilding bought back another 2 million shares in the market at S$0.90 each for a total consideration, including other costs, of S$1.80 million, the Chinese shipbuilder said in a filing to SGX at the midday break Friday.
That followed the shipbuilder saying on Thursday it bought back 2 million shares in the market at S$0.85 to S$0.87 each for a total consideration, including other costs, of S$1.72 million.
After the market close, Yangzijiang said it bought back a further 2 million shares at S$0.96 to S$0.99 each for a total consideration of S$1.95 million.
The stock climbed 11.63 percent to S$0.96 by 2:30 P.M. SGT after opening at the day’s low of S$0.88 on Friday. The shares ended Friday up 15.12 percent at S$0.99.
Shares of the shipbuilder had tumbled on 8 August, dropping as much as 28.5 percent intraday to as low as S$0.93 before retracting to S$1.04, down 20 percent, before trading was halted. The stock ended Thursday down at S$0.86, before Yangzijiang announced its share buybacks.
Trading was resumed Thursday after Yangzijiang said Wednesday that Executive Chairman and controlling shareholder Ren Yuanlin had taken a leave of absence while he assists in a confidential investigation by certain Chinese governmental authorities.
“The businesses and operations of the group are unaffected by the investigation and Mr. Ren Yuanlin’s leave of absence and it is business as usual for the group’s businesses and operations,” Yangzijiang said Wednesday.
The board added that to the best of its knowledge, none of the other directors nor any of the group companies are the subject of the investigation, and none of the other directors or executive officers has been requested by authorities to assist in the investigation.