Primary-Listed Companies Book S$1.7 Billion in 2022 Buyback Consideration

• In 2022, 86 primary-listed companies on SGX bought back shares with a consideration totalling S$1.692 billion. This follows 85 primary-listed companies conducting S$1.186 billion in combined buyback consideration in 2021, while 100 primary-listed companies conducted $1.035 billion in combined buyback consideration in 2020.
   
• Keppel Corp bought back S$500 million worth of its shares in 2022 at an average price of S$6.59 per share, compared to less than S$15 million of its shares at an average price of S$5.10 per share in 2021, as the sustainable urbanisation solutions provider looked to create currency for potential M&A transactions, and fund employee share plans.  
   
• In Dec, Digital Core REIT Management bought back 10,654,100 units or 0.95 per cent of the units of Digital Core REIT as of its listing date. Digital Core REIT also completed its inaugural acquisition in Dec, a 25% interest in an institutional quality freehold data centre located in Frankfurt.
   

The Straits Times Index (STI) generated an 8.4% total return in 2022, with 86 primary company listings in Singapore conducting  S$1.692 billion in combined share buyback consideration. The calendar year consideration was up from S$1.186 billion in 2021, conducted by 85 stocks and 100 primary-listed companies buying back $1.035 billion in consideration in 2020.

Together, the 20 primary-listed stocks that filed the highest buyback considerations in 2022 comprised 94% of the entire combined consideration of S$1.692 billion. This was similar to the preceding year, when the 20 stocks that filed the highest buyback considerations in 2021 made up 96% of the entire consideration of S$1.186 billion, and similar to 2020 when the 20 stocks that filed the highest buyback considerations accounted for 94% of the entire consideration of S$1.035 billion.

The 20 primary-listed stocks with the highest buyback considerations in 2022 are tabled below.

Primary-Listed Companies	CY22 Total Number of Shares/Units Purchased	CY22 Total Buyback Consideration (including stamp duties, clearing changes etc.) paid or payable for the shares	Avg Price Paid
Keppel Corporation	75,864,000	$499,993,419	$6.59
Wilmar International	67,608,400	$277,884,700	$4.11
Oversea-Chinese Banking Corporation	20,900,000	$249,668,167	$11.95
CapitaLand Investment	34,751,900	$132,790,308	$3.82
Yangzijiang Financial Holding	258,611,100	$98,540,324	$0.38
The Hour Glass	27,305,800	$61,833,130	$2.26
Singapore Telecommunications	12,516,939	$33,561,563	$2.68
OUE	24,773,500	$32,469,347	$1.31
Sembcorp Industries	8,947,300	$27,973,364	$3.13
Singapore Technologies Engineering	7,000,000	$26,464,131	$3.78
Raffles Medical Group	20,863,100	$24,347,028	$1.17
Hong Fok Corporation	25,282,400	$23,195,531	$0.92
Singapore Exchange	2,188,000	$19,741,484	$9.02
Nanofilm Technologies International	5,177,100	$13,000,957	$2.51
Yangzijiang Shipbuilding (Holdings)	10,000,000	$12,820,402	$1.28
First Resources	7,928,700	$11,318,205	$1.43
SHS Holdings	72,233,900	$11,222,803	$0.16
Global Investments	75,572,700	$11,050,403	$0.15
HRnetGroup	12,893,800	$10,086,284	$0.78
Valuetronics Holdings	18,971,900	$9,976,633	$0.53

Source: SGX, Bloomberg, Refinitiv

Not included in the table above, in December, Digital Core REIT Management bought back 10,654,100 units or 0.95% of the units of Digital Core REIT, on the mandate to repurchase up to 10% of the units in issue as at the listing date. Digital Core REIT also completed the acquisition of a 25% interest in an institutional quality freehold data centre located in Frankfurt in December. Digital Core REIT is scheduled to report its financial results for its FY22 (ended 31 Dec) after the market close on Feb 2.

Motivations for share buybacks can include employee compensation plans (such as share option schemes or employee share purchase plans) or long-term capital management.

Keppel Corporation’s buyback consideration in 2022 accounted for 30% of the combined S$1.692 billion in buybacks filed in 2022. Keppel Corporation bought back S$500 million worth of its shares in 2022 at an average price of S$6.59 per share, compared to less than S$15 million of its shares at an average price of S$5.10 per share in 2021. As noted in January, Keppel Corporation’s buyback programme allowed the Company to purchase its shares when such shares may be undervalued due to market conditions. Shares repurchased under the programme would be held as treasury shares, which would be used in part for the annual vesting of employee share plans, and also as possible currency for future merger and acquisition M&A activities under Vision 2030. Keppel Corporation management noted in October it was looking at quite a lot of M&A transactions, but still had not used the shares that had been bought back. Keppel Corporation is scheduled to report its financial results for its FY22 (ended 31 Dec) after the market close on Feb 2.

Local market buybacks have also been observed to broadly pick up amidst market declines that are driven by international macroeconomic developments as illustrated below.

Share buyback information can be found on the company disclosure page on the SGX website, using the Announcement category and sub-category of Share Buy Back-On Market (click here). As best practice, companies should refrain from buying back their shares during the two weeks immediately before semi-annual financial statements and one month immediately before the full-year financial statements.

—

Originally Posted January 9, 2023 – Primary-Listed Companies Book S$1.7 Billion in 2022 Buyback Consideration