GB Auto, Palm Hills, Arabia Investments plan stock buybacks
GB Auto, Arabia Investments, Palm Hills plan stock buybacks: GB Auto, Palm Hills, and Arabia Investments are all looking to buy back stock over the next few weeks in a bid to hedge against the current market volatility caused by the covid-19 outbreak. GB Auto is set to purchase 10 mn treasury shares by 2 April (pdf), while Arabia Investments Holding plans to purchase up to 134.9 mn treasury shares by 3 June (pdf). Palm Hills Development (PHD) said earlier this week that its board of directors has signed off on the purchase of 62.3 mn treasury stocks after its share price suffered what it called an “unjustified” drop.
The buybacks come after the Financial Regulatory Authority introduced a new temporary rule that enables listed companies to purchase treasury stocks on the same day, rather than providing the EGX with three days’ notice. The move is designed to boost trading and hedge against turbulence in equity markets, the market regulator said.