E-Vapor Company RLX Technology's Strategic Move: Extends Share Buyback Program Through 2025
Portfolio Pulse from Lekha Gupta
RLX Technology Inc (NYSE:RLX), a China-based e-vapor company, has announced the extension of its share repurchase program through December 31, 2025. The program, established in December 2021, allows for the repurchase of up to $500 million in ordinary shares represented by ADSs. As of December 28, 2023, RLX has repurchased approximately $193.5 million of its shares. The company plans to use its existing cash balance for further repurchases, with $2.074 billion in various cash forms reported as of September 30, 2023. RLX also recently invested about $25 million in two share purchase agreements to aid international expansion. RLX shares saw a 2.08% increase in premarket trading to $1.96.
December 29, 2023 | 12:25 pm
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RLX Technology Inc has extended its share repurchase program until 2025, with significant repurchases already made and plans to continue using its strong cash balance for further buybacks.
The extension of the share repurchase program is a positive signal to investors, often interpreted as a sign that the company believes its shares are undervalued. The repurchase of shares can also help to support the stock price in the short term. With a substantial cash reserve and a proactive approach to international expansion, RLX is positioning itself for growth, which could further boost investor sentiment.
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IMPORTANCE 80
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