- TPW shares rose on Thursday, outperforming the broader S&P/ASX 200 index.
- The online retailer today announced a share buyback of up to AU$30 million.
- This buyback program will commence from 3 April 2023 and will continue over the next 12 months.
Australia's pure-play online retailer of furniture and homewares, Temple & Webster Group Ltd (ASX: TPW), is having a good day on the ASX on Thursday, 16 March 2023. Shares of the company were trading 1.734% higher at AU$3.520, outperforming the broader S&P/ASX 200 index, which was down 2.14% as of 10.45 am AEDT.
So why are TPW shares rising despite the weakness in the overall equity market? The online retailer today announced a share buyback, leading to buying in its shares.
According to the announcement, Temple & Webster intends to do an on-market share buyback for a maximum value of AU$30 million. This buyback program will commence from 3 April 2023 and continue over the next 12 months.
Commenting on the buyback program, the company said:
Worth mentioning here is that TPW shares have fallen over 40% in the last one year, and this is why the management probably believes that TPW shares are undervalued and hence the announcement of buyback.
TPW shares price performance over the last one year
Buyback price and other details
As per the company's announcement, the buyback price will not be over 5% above the volume-weighted average price of its shares over the five trading sessions before the buyback date.
The company said that this buyback does not require shareholder approval as the maximum number of shares that will be bought back over the 12 months will be up to 10% of the issued capital.
The company will continue to assess market conditions, market price of shares, available investment opportunities, and all other relevant considerations throughout the buyback period. Temple & Webster further mentioned that it has the right to terminate the buyback at any time as it feels appropriate without prior notice.