Asustek Computer Inc’s (華碩電腦) board of directors yesterday approved a plan to buy back 10 million shares on the open market in a bid to stabilize the company’s share price.
Asustek, the world’s fifth-largest PC maker by shipments, said the buyback scheme would run from today through the end of next month, with shares priced between NT$240 and NT$300 each, a filing submitted to the Taiwan Stock Exchange showed.
The company said the repurchasing of the shares, accounting for 1.33 percent of its outstanding shares, was aimed at securing shareholders’ rights and benefits.
Asustek’s shares fell five days in a row last week amid market speculation that it had slashed its full-year notebook computer shipments estimate to less than 20 million units because of weak demand.
The stock fell to a 11-month low of NT$256 on Friday last week after several foreign brokerages downgraded their ratings and target prices for Asustek shares.
Over the past week, Asustek shares dropped 8.59 percent, underperforming the broader market, which rose 3.58 percent.
On June 17, several shareholders called on the company to buy back shares to lift the share price. At the time, Asustek chairman Jonney Shih (施崇棠) said it would consider the option if necessary.
Shares closed up 3.1 percent at NT$266 yesterday before the buyback announcement was made.