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OneConnect Announces Upsize of Its Share Repurchase Program
Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags
buyback
Rhea-AI Summary
OneConnect Financial Technology Co., Ltd. (NYSE: OCFT) announced an upsized share repurchase program, allowing purchases of up to 3% of outstanding ordinary shares before September 30, 2022. This decision reflects the company's confidence in long-term growth and valuation. Funding will come from existing cash reserves, with repurchases conducted via open market transactions or privately negotiated deals. The board will periodically review the program’s terms and size.
Positive
Upsized share repurchase program increased to 3% of outstanding shares, indicating strong confidence in company's valuation and growth prospects.
Funding for the repurchase will be sourced from existing cash, minimizing financial strain.
Negative
None.
SHENZHEN, China--(BUSINESS WIRE)--
OneConnect Financial Technology Co., Ltd. (“OneConnect” or the “Company”) (NYSE: OCFT), a leading technology-as-a-service provider for financial institutions in China, today announced its board of directors has approved to upsize its share repurchase program announced on February 24, 2022 by 1% of the total outstanding ordinary shares, pursuant and subject to applicable laws and the Company’s securities trading policy. As a result, after this upsize, the Company may purchase its own American depositary shares (the “ADSs”) up to 3% of the total outstanding ordinary shares before September 30, 2022 (the “Repurchase Program”). OneConnect expects to fund the repurchase from its existing cash balance.
“The upsize of the share repurchase program demonstrates our continued confidence in our long-term business growth and belief that our ADSs are currently undervalued in the marketplace. We are committed to creating shareholder value, and believe that our business strategy and execution ability will continue to drive the long-term growth of the company,” said Wangchun Ye, Chairman of the Board of Directors and Director of OneConnect.
The Company expects to effect the proposed share repurchase through open market transactions at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means from time to time as market conditions warrant and in compliance with applicable requirements of Rule 10b5-1 and Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended, at times and in such amounts as the Company deems appropriate. The Board will review the Repurchase Program periodically, and may authorize adjustment of its terms and size or suspend or discontinue the program.
About OneConnect
OneConnect Financial Technology Co. Ltd. is a technology-as-a-service provider for financial institutions. The Company integrates extensive financial services industry expertise with market-leading technology to provide technology applications and technology-enabled business services to financial institutions. The integrated solutions and platform the Company provides include digital retail banking solution, digital commercial banking solution, digital insurance solution and Gamma Platform, which is a technology infrastructural platform for financial institutions. The Company’s solutions enable its customers’ digital transformations, which help them improve efficiency, enhance service quality, and reduce costs and risks.
The Company has established long-term cooperation relationships with financial institutions to address their needs of digital transformation. The Company has also expanded its services to other participants in the value chain to support the digital transformation of financial services eco-system. In addition, the Company has successfully exported its technology solutions to overseas financial institutions.
This announcement contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will”, “expects”, “anticipates”, “future”, “intends”, “plans”, “believes”, “estimates”, “confident” and similar statements. Such statements are based upon management’s current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s limited operating history in the technology-as-a-service for financial institutions industry; its ability to achieve or sustain profitability; the tightening of laws, regulations or standards in the financial services industry; the Company’s ability to comply with the evolving regulatory requirements in the PRC and other jurisdictions where it operates; its ability to comply with existing or future laws and regulations related to data protection or data security; its ability to maintain and enlarge the customer base or strengthen customer engagement; its ability to maintain its relationship with Ping An Group, which is its strategic partner, most important customer and largest supplier; its ability to compete effectively to serve China’s financial institutions; the effectiveness of its technologies, its ability to maintain and improve technology infrastructure and security measures; its ability to protect its intellectual property and proprietary rights; risks of defaults by borrowers under the loans for which the Company provided credit enhancement under its legacy credit management business; its ability to maintain or expand relationship with its business partners and the failure of its partners to perform in accordance with expectations; its ability to protect or promote its brand and reputation; its ability to timely implement and deploy its solutions; its ability to obtain additional capital when desired; litigation and negative publicity surrounding China-based companies listed in the U.S.; disruptions in the financial markets and business and economic conditions; the Company’s ability to pursue and achieve optimal results from acquisition or expansion opportunities; the duration of the COVID-19 outbreak, including the emergence of COVID variants, and its potential impact on the Company’s business and financial performance; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.
