By Roshan Thomas (Reuters) -Shares of Australia’s Zip rose more than 8% on Tuesday after the “buy-now, pay-later” firm announced a share buyback plan of up to A$50 million ($30.1 million), with the programme set to begin around April 23. Zip’s shares rose as much as 20.2% to A$1.430, emerging as one of the top […]
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Australian payments firm Zip soars on $30 million share buyback plan
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By Roshan Thomas
(Reuters) -Shares of Australia’s Zip rose more than 8% on Tuesday after the “buy-now, pay-later” firm announced a share buyback plan of up to A$50 million ($30.1 million), with the programme set to begin around April 23.
Zip’s shares rose as much as 20.2% to A$1.430, emerging as one of the top percentage gainers on the benchmark index S&P/ASX 200, which was up 1.5% as of 0341 GMT.
The digital retail finance and payments provider’s shares had slumped a day earlier due to tariff tensions, falling 7.4% to be one of the biggest losers on the benchmark index.
“Zip Co was caught up in the sell-off frenzy and is now being bought back by bargain hunters. The A$50 million buyback is a definite sweetener to the stock”, said Brad Smoling, managing director at Smoling Stockbroking.
The number of shares purchased in the buyback will depend on several factors including market conditions, the company said in a statement.
The company, in February, reported that its first-half cash earnings more than doubled.
This increase was attributed to higher total transaction volumes and revenue, as well as improved performance in debt arrears.
($1 = 1.6600 Australian dollars)
(Reporting by Roshan Thomas in Bengaluru; Editing by Sumana Nandy and Mrigank Dhaniwala)