SGX Market Updates

Buyback Consideration at S$174M in June 2018, Led by 9 STI stocks


PUBLISHED ON |

02 July 2018

  • For the month of June, 33 stocks repurchased 74.6 million shares for a total consideration of S$174.0 million. The buyback consideration was up 26% from S$137.9 million in May and the third highest reported monthly consideration since Sep 2015.

  • The 33 stocks included nine STI constituents - CapitaLand, UOB, Keppel Corp, OCBC, SATS, Yangzijiang, Venture, SPH & Sembcorp Industries; which made up as much as S$155.4 million of the S$174.0 million consideration.

  • CapitaLand led the June tally with the repurchase of 17.2 million shares for a consideration of S$60.8 million. The largest buyback consideration posted by a non-STI stock was by Wing Tai Hldgs, which bought back 2.3 million shares for a consideration of S$4.5 million.




Total share buyback consideration for the month of June 2018 reached a three month high, with a total consideration value of $174.0 million. This was the third highest monthly consideration value since September 2015 when the month’s buyback consideration totaled S$445 million.

Over the month of June, there were 74.6 million shares repurchased by 33 companies. The buyback consideration was up 26% from the S$137.9 million recorded in May 2018 (click here for more details). During the month a number of stocks commenced new mandates including - Keppel Corporation, Wing Tai Holdings, Q & M Dental Group (Singapore), SingHaiyi Group, Memtech International, Sembcorp Industries, OUE, Telechoice International, AEM Holdings, Health Management International, Tiong Seng Holdings, Mun Siong Engineering, Koda, Annaik, CDW Holding and S I2I.

The Straits Times Index (STI) declined 4.7% for the month of June bringing its dividend inclusive decline in total return to 2.3% for the first half of 2018. This compared to the benchmarks of Australia, Hong Kong and Japan, registering SGD denominated average total returns of 1.2% for the six months.




 

The 5 stocks with the largest buyback consideration value last month were CapitaLand, United Overseas Bank (“UOB”), Keppel Corporation, Oversea-Chinese Banking Corporation (“OCBC”) and SATS which made up 81% of the S$174.0 million in total consideration. Together, nine STI constituents - CapitaLand, UOB, Keppel Corporation, OCBC, SATS, Yangzijiang Shipbuilding Holdings, Venture Corporation, Singapore Press Holdings and Sembcorp Industries made up as much as S$155.4 million (89.3%) of the S$174.0 million in consideration.

The table below summarises the buyback considerations in June 2018. The table is sorted by the value of the total consideration amount for the month, which combines the amount of shares purchased and the purchasing price of the shares.


Name Start
Date
Mandate Total No.
of Shares
Bought back in
June 2018
Total
Consideration
for June
S$
Cum No.
of Shares
Purchased to
End of June
Percent 
CapitaLand 30/04/2018 84,014,525 17,262,500 60,755,920 29,075,800 0.69
United Overseas Bank 20/04/2018 83,042,898 1,027,802 28,053,221 1,836,063 0.11
Keppel Corporation 20/04/2018 90,807,408 3,061,000 21,892,948 3,061,000 0.17
OCBC 30/04/2018 209,128,622 1,275,000 15,653,892 4,075,000 0.10
SATS  21/07/2017 22,384,146 2,759,500 13,768,690 6,269,500 0.56
Yangzijiang Ship 27/04/2018 396,883,800 8,158,400 7,652,946 13,158,400 0.33
Venture Corporation 24/04/2018 28,743,057 309,000 5,745,753 634,000 0.22
Wing Tai Holdings 23/10/2017 77,447,436 2,278,500 4,478,950 2,278,500 0.29
Silverlake Axis  26/10/2017 264,661,760 6,030,800 3,336,768 176,390,400 6.66
Q & M Dental Group (SG) 19/04/2018 79,482,022 5,740,900 3,044,487 5,740,900 0.72
Singapore Press Hldgs 01/12/2017 159,861,221 500,000 1,348,009 1,300,000 0.08
SingHaiyi Group  27/07/2017 287,029,785 12,367,900 1,220,330 12,367,900 0.43
Duty Free International 29/06/2017 122,850,039 4,592,500 953,935 15,046,400 1.22
Memtech International  25/04/2018 14,088,087 800,000 917,666 800,000 4.34
Roxy-Pacific Holdings 06/04/2018 119,009,499 1,423,400 697,637 5,323,900 0.45
HI-P International 20/04/2018 80,848,740 500,000 605,450 3,628,700 0.45
Sembcorp Industries  20/04/2018 35,744,450 200,000 558,572 200,000 0.01
CITIC Envirotech  08/06/2018 150,258,281 980,000 544,277 5,037,700 0.21
Oxley Holdings 31/10/2017 147,410,998 1,200,000 501,785 5,700,000 0.19
OUE 26/04/2018 90,181,586 300,000 476,623 300,000 0.03
Bonvests Holdings 25/04/2018 40,184,456 297,300 394,241 327,600 0.08
Best World Int 30/04/2018 55,032,011 275,000 353,981 925,000 0.17
Telechoice Int 26/04/2018 45,438,779 1,188,500 309,997 1,188,500 0.26
Sarine Technologies  24/04/2018 35,134,212 343,500 308,586 593,500 0.17
EM Holdings  26/04/2018 27,014,073 200,000 210,539 200,000 0.07
Health Management Int 30/10/2017 82,086,200 160,000 99,482 160,000 0.02
Tiong Seng Holdings 25/04/2018 45,962,384 201,100 78,808 201,100 0.05
Mun Siong Engineering 18/06/2018 57,950,840 784,000 48,100 784,000 0.14
Spackman Entertain Grp 01/06/2018 69,267,370 250,000 15,553 750,000 0.11
Koda  27/10/2017 4,104,571 11,000 7,552 11,000 0.01
Annaik 30/04/2018 24,654,590 69,900 7,106 69,900 0.03
CDW Holding 22/06/2018 22,964,400 20,000 4,616 20,000 0.01
S I2I 30/04/2018 1,234,730 1,100 2,963 1,100 0.01
Total 74,568,602 174,049,383

Source: SGX My Gateway (data as of 30 June 2018)
* percentage of company’s issued shares excluding treasury shares as at the date of the share buyback resolution.
Note: Table does not include overseas buyback transactions conducted by Inch Kenneth Kajang Rubber PLC.



Share buyback transactions involve share issuers repurchasing some of their outstanding shares from shareholders through the open market. Once the shares are bought back, they will be converted into treasury shares, which means they are no longer categorised as shares outstanding. Other motivations for share buybacks include companies moving to align stock valuations with balance sheet objectives.

The date of the relevant share buyback mandate is also provided in the table above, in addition to the amount of shares authorised to be bought back under the mandate. The total number of shares purchased under the mandate and the percentage of the companies that issued shares that have been repurchased under the mandate are also provided.

Share buyback information can be found on the company disclosure page on the SGX website, using the Announcement category and sub-category of Share Buy Back-On Market.







This article is provided by SGX My Gateway.



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