The board of Alibaba Group has approved the upsize of its share repurchase program from US$15 billion to US$25 billion. The development comes as its stock price continues to slump amid China’s tightening grip on local tech giants.
Photo credit: zhudifeng / 123RF
The ecommerce titan said the repurchase program will be effective for a two-year period through March 2024. Alibaba said the repurchase program’s upsizing marks a sign of confidence about its “continued growth in the future.”
As of March 18, the company had purchased 56.2 million American depositary shares for about US$9.2 billion as part of the previously announced repurchase program, it stated.
Alibaba’s announcement comes as its share price on the New York Stock Exchange dropped more than 56% year-on-year to US$103.6 on March 22 as China continues its crackdown on internet titans, which has also affected the likes of Tencent and Baidu. Alibaba’s share price had fallen to as low as US$76.76 on March 15.
The ecommerce titan also announced the appointment of Weijian Shan, executive chair of investment group PAG, as an independent director to its board, effective March 31. He will also serve on the board’s audit committee. Meanwhile, Börje Ekholm, president and CEO of the Ericsson Group, will retire from Alibaba’s board on the same day.
See also: Why Alibaba should spin off Lazada
Editing by Samreen Ahmad and Lorenzo Kyle Subido
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