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“The board’s decision reflects SSP’s faith in the underlying value of its stock and in the company’s value and future prospects, as well as in the suitability of the Philippines as an investment host,” SSP Chairman Dong Hwan Im said in a statement.
The share buyback program will be funded out of unrestricted retained earnings using cash generated from revenues.
The firm said that the program aims to “enhance shareholder value and to manifest confidence in SSP’s share value and prospects through the repurchase by SSP of its own shares of stock.”
Mr. Im added that he hopes the stock market will realize the underlying value of SSP shares as an investment and that the Philippine bourse will recover in the medium-term pending the resolution of global geopolitical tensions and uncertainties.
Earlier this year, SSP announced that it was allocating $65 million for its capital spending in the next five years.
In 2021, SSP’s net income after tax rose by 133% to $12.8 million from $5.5 million, driven by a boost in production.
SSP is a global outsourced semiconductor assembly and test company whose facilities are located in the Philippines. It is Clark Freeport Zone’s leading exporter of semiconductors with an aggregate export shipment value of $4.16 billion as of 2021.
The share buyback program starts on July 1, 2022 and will end upon the full usage of the approved allotment, or as may be directed by the board of directors subject to regulations.
At the stock exchange on Thursday, SSP shares rose by 21.21% or 21 centavos to close at P1.20. — Luisa Maria Jacinta C. Jocson