OREANDA-NEWS. February 18, 2016. There are two common motivations for a listed company to buy shares back from the open market – when they feel that their share price has been undervalued or simply to facilitate employee share option schemes.  The former is typically cited when the share price reaches levels that are seen to provide good value for company capital. The latter will be of particular relevance amidst tight labour markets where companies offer share bonuses to employees.

The Buy-back Process

Shareholders’ approval must have been obtained for the share buy-back scheme with the price restrictions and size clearly set out in the circular seeking shareholders’ approval. Share buy-backs are also subject to Section 76C of the Companies Act, Chapter 50. The purchase price is subject to price restrictions as approved by shareholders at the Annual General Meeting, as the case may be.  The purchase price is subject to a limit of 105% of the average closing price for market purchase; and 120% of the average closing price in the case of off-market purchases pursuant to an equal access scheme.  Companies should check the definition of the average closing price as set out in the circular to shareholders. Share buy-back is valid for the period from the date of shareholders’ approval to the date on which the next annual general meeting is held or date when the mandate is fully utilised or revoked or varied (if applicable).

Share buy-back mandates and 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 (click here).

Recent Buy-backs

In the month of January 2016, there were a total of 85,323,600 shares repurchased by 44 stocks, with a total consideration of S\\$80.9 million. This compared to S\\$97.2 million in January 2015 and S\\$63.1 million in December 2015, which are 16.7% YoY decline and 28.2% MoM increase respectively.

The five stocks with the largest considerations in buybacks in the month of January 2016 were DBS Group Holdings, Oversea-Chinese Banking Corporation, Q & M Dental Group (Singapore), Silverlake Axis and Wing Tai Holdings.

The table below is sorted by the total consideration amount in buybacks in the month of January, which collates the amount of shares purchased and the purchasing price of the shares. The date of the relevant share buyback mandate is also provided, 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 companies that issued shares that have been repurchased under the mandate, are also provided.

Name Start Date Mandate Total no of shares purchased: January Total Consideration: January S\\$ Cum no of shares purchased to date Percent*
DBS GROUP HOLDINGS 23/04/2015 24,787,928 1,900,000 28,468,293.49 14,215,800 0.57
OVERSEA-CHINESE BANKING CORPORATION 28/04/2015 199,084,946 1,580,000 13,271,930.60 8,150,000 0.21
Q & M DENTAL GROUP (SINGAPORE) 28/04/2015 77,862,349 7,285,600 5,085,241.48 8,323,800 1.07
SILVERLAKE AXIS 26/10/2015 267,892,880 8,050,000 4,969,436.87 97,860,700 3.65
WING TAI HOLDINGS 28/10/2015 78,160,806 2,590,100 4,194,316.72 3,502,600 0.45
CHINA EVERBRIGHT WATER 15/12/2015 260,801,426 7,793,400 3,838,465.40 7,793,400 0.30
SINGAPORE TECHNOLOGIES ENGINEERING 23/04/2015 62,188,890 988,900 2,837,502.83 11,739,800 0.38
SATS 21/07/2015 22,202,522 567,600 2,150,107.08 567,600 0.05
PACIFIC RADIANCE 28/04/2015 72,575,501 6,236,400 1,844,721.58 9,917,400 1.37
SINGAPORE PRESS HOLDINGS 01/12/2015 159,734,295 500,000 1,759,472.87 500,000 0.03
ISOTEAM 27/10/2015 14,293,329 2,600,000 1,632,546.12 2,600,000 1.82
RAFFLES EDUCATION CORPORATION 19/10/2015 97,412,093 6,176,800 1,532,963.59 6,676,900 0.69
GOODLAND GROUP 29/01/2015 33,645,984 4,435,800 1,185,263.14 28,664,800 8.52
SIA ENGINEERING COMPANY 24/07/2015 22,465,323 314,800 1,136,956.94 1,514,300 0.13
PACIFIC CENTURY REGIONAL DEVELOPMENTS 24/04/2015 273,887,290 2,815,500 1,129,733.81 89,132,600 3.25
KOYO INTERNATIONAL 29/04/2015 19,105,849 6,300,000 630,438.20 6,300,000 3.30
GCCP RESOURCES 30/09/2015 119,343,293 5,200,000 580,938.04 38,600,000 3.23
LUM CHANG HOLDINGS 30/10/2015 38,403,390 1,597,800 575,270.52 3,910,800 1.02
CENTURION CORPORATION 28/04/2015 75,687,333 1,376,100 513,256.96 6,447,500 0.85
SUPER GROUP 27/04/2015 27,879,949 600,000 432,968.80 700,000 0.06
PEC 13/11/2015 25,425,700 1,009,200 402,941.29 1,131,400 0.44
HG METAL MANUFACTURING 23/04/2015 38,485,618 8,139,200 309,800.10 31,936,300 2.49
GP BATTERIES INTERNATIONAL 30/07/2015 16,360,725 264,400 238,885.71 5,384,800 3.29
POH TIONG CHOON LOGISTICS 30/04/2015 21,402,940 333,100 234,863.17 1,111,500 0.52
LH GROUP 02/11/2015 1,578,292 349,500 215,383.42 558,200 3.54
PACC OFFSHORE SERVICES HOLDINGS 27/04/2015 182,000,000 610,500 180,571.18 7,905,100 0.43
COURTS ASIA 31/07/2015 53,734,662 474,000 178,010.47 13,166,900 2.45
SEMBCORP MARINE 17/04/2015 208,873,772 100,000 152,032.78 859,200 0.04
GKE CORPORATION 30/10/2015 64,112,529 1,944,200 149,980.63 1,944,200 0.30
POWERMATIC DATA SYSTEMS 24/07/2014 3,480,262 158,300 147,243.49 517,860 1.49
GLOBAL PALM RESOURCES HOLDINGS 23/04/2015 20,403,720 554,200 138,436.96 1,021,900 0.50
KINGSMEN CREATIVES 30/04/2015 19,455,326 175,000 113,161.20 1,000,000 0.51
HEALTH MANAGEMENT INTERNATIONAL 22/10/2015 57,707,128 350,000 110,132.69 350,000 0.06
NORDIC GROUP 29/04/2015 40,000,000 479,000 82,196.33 5,148,200 1.29
AEM HOLDINGS 28/04/2015 4,434,768 284,500 81,005.44 584,000 1.33
VALUETRONICS HOLDINGS 24/07/2015 37,472,625 200,000 77,184.80 500,000 0.13
ENGRO CORPORATION 28/04/2015 11,868,350 70,000 71,203.19 126,000 0.11
TIONG SENG HOLDINGS 24/04/2015 45,962,384 265,000 63,708.87 1,353,500 0.29
TRAVELITE HOLDINGS 24/07/2015 6,157,140 306,000 63,517.05 306,000 0.50
A-SONIC AEROSPACE 30/04/2015 17,876,807 207,500 57,975.87 3,324,200 1.86
BREADTALK GROUP 22/04/2015 28,183,724 50,200 55,361.81 531,700 0.19
TREK 2000 INTERNATIONAL 24/04/2015 29,711,692 74,500 21,596.39 1,229,000 0.41
BRC ASIA 23/01/2015 18,772,168 16,400 10,721.59 1,337,400 0.71
GP INDUSTRIES 30/07/2015 48,588,788 100 104.32 1,123,300 0.23

Source: SGX (data is for the time period of 1 January 2016  to 31 January 2016)
*percentage of company’s issued shares excluding treasury shares as at the date of the share buyback resolution

DBS Group Holdings

On 23 April 2015, a share buyback resolution was passed for DBS Group Holdings Ltd. In the month of January 2016, DBS Group Holdings Ltd repurchased a total number of 1,900,000 shares with a total consideration of S\\$28,468,293.49.

The maximum number of shares authorised for the buyback transaction was 24,787,928. As of 31 January 2016, by way of acquisition, DBS Group Holdings Ltd had purchased a cumulative amount of 14,215,800 shares under the 23 April 2015 resolution. This represented 0.57% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 31 January 2016, the number of issued shares excluding treasury shares stood at 2,499,880,749 and the number of treasury shares held after purchase stood at 14,900,000.

Oversea-Chinese Banking Corporation

On 28 April 2015, a share buyback resolution was passed for Oversea-Chinese Banking Corporation. In the month of January 2016, Oversea-Chinese Banking Corporation repurchased a total number of 1,580,000 shares with a total consideration of S\\$13,271,930.60.

The maximum number of shares authorised for the buyback transaction was 199,084,946. As of 31 January 2016, by way of acquisition, Oversea-Chinese Banking Corporation had purchased a cumulative amount of 8,150,000 shares under the 28 April 2015 resolution. This represented 0.21% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 31 January 2016, the number of issued shares excluding treasury shares stood at 4,113,971,678 and the number of treasury shares held after purchase stood at 7,589,689.

Q & M Dental Group (Singapore)

On 28 April 2015, a share buyback resolution was passed for Q & M Dental Group (Singapore). In the month of January 2016, Q & M Dental Group (Singapore) repurchased a total number of 7,285,600 shares with a total consideration of S\\$5,085,241.48.

The maximum number of shares authorised for the buyback transaction was 77,862,349. As of 31 January 2016, by way of acquisition, Q & M Dental Group (Singapore) had purchased a cumulative amount of 8,323,800 shares under the 28 April 2015 resolution. This represented 1.07% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 31 January 2016, the number of issued shares excluding treasury shares stood at 786,987,174 and the number of treasury shares held after purchase stood at 8,323,800.

Silverlake Axis

On 26 October 2015, a share buyback resolution was passed for Silverlake Axis. In the month of January 2016, Silverlake Axis repurchased a total number of 8,050,000 shares with a total consideration of S\\$4,969,436.87.

The maximum number of shares authorised for the buyback transaction was 267,892,880. As of 31 January 2016, by way of acquisition, Silverlake Axis had purchased a cumulative amount of 97,860,700 shares under the 26 October 2015 resolution. This represented 3.65% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 31 January 2016, the number of issued shares excluding treasury shares stood at 2,660,262,100 and the number of treasury shares held after purchase stood at 36,210,700.

Wing Tai Holdings

On 28 October 2015, a share buyback resolution was passed for Wing Tai Holdings. In the month of January 2016, Wing Tai Holdings repurchased a total number of 2,590,100 shares with a total consideration of S\\$4,194,316.72.

The maximum number of shares authorised for the buyback transaction was 78,160,806. As of 31 January 2016, by way of acquisition, Wing Tai Holdings had purchased a cumulative amount of 3,502,600 shares under the 28 October 2015 resolution. This represented 0.45% of the company's issued shares (excluding treasury shares) as at the date of the share buyback resolution.

As of 31 January 2016, the number of issued shares excluding treasury shares stood at 778,105,460 and the number of treasury shares held after purchase stood at 15,821,800.