Sygnus Boosts Shareholder Value with Share Buy Back

• Sygnus Credit Investments Limited (SCI) has advised that the company repurchased 2,400,000 JMD Ordinary shares on March 19, 2024, under the Company’s Share Buy-Back Programme.
• In a note to the Jamaica Stock Exchange (JSE), SCI advised that the purpose of the purchase was to enhance shareholder value and that the maximum intended repurchase is up to US$9Mn of SCI’s JMD and USD ordinary shares.
• The actual amount repurchased as at March 21 is a total of 136,525 USD Ordinary Shares and 4,878,274 JMD Ordinary Shares, equivalent to approximately US$433,000.00. This is inclusive of the units previously repurchased in June 2023.
• The company also noted that the source of funding for the purchase was the company’s cash flows, and the shares were purchased on the open market via its brokers.
• When a company buys back its shares from the stock market, it reduces the number of outstanding shares. Each shareholder of the remaining shares gets a larger portion of dividends paid and ultimately owns a greater stake in the company. Additionally, earnings per share (EPS) and return on equity (ROE) tend to rise, which may attract more investors, and given the increased scarcity of shares, this could drive up demand and potentially lead to an increase in the share price.

(Sources: JSE and NCBCM Research)