VIPS Stock Price Increased Over 3% Pre-Market: Why It Happened

By Amit Chowdhry ● Mar 31, 2021
  • The stock price of Vipshop Holdings Limited (NYSE: VIPS) increased by over 3% pre-market. This is why it happened.

The stock price of Vipshop Holdings Limited (NYSE: VIPS) – a leading online discount retailer for brands in China – increased by over 3% pre-market. This appears to be a continuation of momentum from yesterday.

Investors appear to be responding to the company announcing that its board of directors has authorized a share repurchase program under which the company may repurchase up to US$500 million of its Class A ordinary shares over the 24-month period upon the establishment of share repurchase program. Vipshop Holdings plans to adopt and implement such share repurchase program in accordance with applicable rules and requirements under the Securities Exchange Act of 1934, as amended and the company’s insider trading policy.

The company’s proposed repurchases may be made from time to time in the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. And the timing and dollar amount of repurchase transactions will be subject to the Securities and Exchange Commission Rule 10b-18 and/or Rule 10b5-1 requirements. 

Vipshop’s board of directors will review the share repurchase program periodically and may authorize adjustment of its terms and size. The company expects to fund the repurchases out of its existing cash balance.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.