SM Investments Corporation (SMIC) approved a share buyback program of up to PHP60 billion (approximately US$1 billion) following its board meeting today.
This marks the first buyback program in SM Investments’ corporate history.
“This major undertaking is in recognition of the significant under-valuation of SM Investments’ share price. In the current market we trade well below our historical valuation multiples, which do not reflect the performance and future growth potential of the Group,” said Frederic C. DyBuncio, president and CEO of SM Investments Corporation.
SMIC shares closed at PHP780 per share on Feb. 27, 2025, translating to a price-earnings ratio of 11.5x based on 2024 earnings.
The program aims to create value for shareholders by reducing the number of shares outstanding, thereby improving future earnings per share.
“We always aim to create and return value to our shareholders. This program intends to do so by authorizing the buyback of up to approximately 6% of our shares outstanding,” DyBuncio said.
The company will execute the buyback program in the open market with appropriate disclosures submitted to the Securities and Exchange Commission and the Philippine Stock Exchange.
