- The stock price of Vipshop Holdings Ltd (NYSE: VIPS) has increased by over 5% pre-market. This is why it happened.
The stock price of Vipshop Holdings Ltd (NYSE: VIPS) – a leading online discount retailer for brands in China – has increased by over 5% pre-market. Investors appear to be 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 the share repurchase program.
Vipshop 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.
Vipshop’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.
The company’s board of directors will review the share repurchase program periodically and may authorize adjustment of its terms and size. And 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.