Detsky Mir launched a share buyback program for up to RUB 3.5 billion. The news came out this morning 8 February on the website of the Corporate Information Disclosure Center.
The company plans to buy back part of the ordinary shares, traded on the Moscow Exchange. Program duration - up to 9 August 2022, however it may be extended or terminated earlier than this period. The ransom amount is approximately 4,6% company capitalization and value 6,6% shares in free float.
Buy shares at exchange auctions will be LLC "DM Capital" - on 100% subsidiary of Detsky Mir. As follows from the message of PAO, shares will be redeemed subject to all applicable restrictions and rules and will not be used for voting. This is in line with Art. 72 of the Law "On Joint Stock Companies".
As of 13:00 8 February, Detsky Mir's shares rose by 4% relative to the closing price of the previous day and cost about 102 R. Previously, about 10:45, growth exceeded 5%, and the price has reached 103,5 R. The volume of trading at the beginning of the day was noticeably higher than usual.
Buyback, or buyback, has a positive effect on the share price, as it creates additional demand for securities. According to BCS Express calculations, in the event of a uniform redemption of securities within six months, shares can be redeemed for approximately 26.9 million rubles a day, or about 8,9% from the median daily turnover in them for the last year.
Besides, a decrease in the number of securities due to their redemption will increase earnings and dividends per share. This should also drive up the price..
On 8 February, According to the Children's World website, the company has 739 million shares. In free circulation on the Moscow Exchange are 69,9% Shares.