- Money3 today launched its new capital management strategy- share buyback.
- The strong financial health of Money3 supported the decision to invest in the company’s own shares.
- Money3 began trading in green on the ASX today, backed by this announcement.
The shares of Money3 Corporation Limited (ASX:MNY) were spotted trading 2.242% higher at AU$2.28 per share at 11:03 AM AEST on the ASX today (11 May). Approximately 529,000 shares of Money3 were traded after the stock market opened for trading on Wednesday morning.
The ASX-listed diversified financial company’s share price spiked on the ASX today after it announced the implementation of its share buyback strategy.
The share price of Money3 has fallen approximately 25% on the ASX over the past 12 months. On the other hand, Money3’s year-to-date share price also fell almost by 34% at 11:03 AM AEST on the ASX today (11 May).
Details of Money3’s share buyback plan
Money3 announced that the company is all set to implement its on-market share buyback plan worth AU$15 million. This share buyback is also a part of Money3’s capital management strategy.
The company expects to continue buying its ordinary shares for a period of approximately 12 months.
Share buyback has always been an excellent strategy adopted by several companies when it comes to investing in themselves. It reflects that the company is highly confident about its own financial performance and future growth prospects. As a result, today’s investment will allow Money3 to enjoy the perks of its investment in future.
Share buyback is also another strategy to grab investors’ attention to invest in the company. It affirms investors about the future financial performance of a company.
Money3’s share buyback is expected to begin on 25 May 2022 and is likely to continue till 24 May 2023.
Scott Baldwin, the Managing Director of Money3, said that the company holds more than 20 years of experience in lending and collecting throughout all credit cycles. Furthermore, Money3’s strong financial health, along with low leverage levels and the lowest cost of capital, has helped the company to implement its on-market share buyback strategy. Standing at this point, the board of Money3 believes that share buyback is the appropriate strategy to manage its capital.
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Money3 Corporation Limited is an ASX-listed financial service provider with a market capitalisation of AU$476.69 million. The company mainly deals with offering credits through secured and unsecured personal loans in Australia. Money3 is popularly known for offering small cash and personal loans, car loans and vehicle finance service, along with offering cheque cashing services.
Money3 has 53 branches across various parts of Australia, such as Victoria, New South Wales, Queensland, etc. Its headquarter is situated in Bundoora, Australia. Supported by a healthy financial environment, Money3 also paid a fully franked interim dividend worth AU$0.06 per share to its eligible shareholders in April 2022.