Bright Scholar Plans $100 Million Share Repurchase
The announcement of the repurchase program came less than a year after the company raised $157.5 million through its initial public offering in New York.
Bright Scholar Education Holdings Ltd. (NYSE:BEDU) announced today that it would initiate a share repurchase plan aimed at buying back up to $100 million of its American depositary shares over the next 12 months.
The company, a top operator of international and bilingual K-12 schools in China, said its board had approved the repurchase program "subject to market conditions."
The announcement of the repurchase program came less than a year after the company raised $157.5 million through its initial public offering in New York. In mid-May last year, Bright Scholar issued 15 million shares at $10.50 per share.
It stock price since then soared for the first several months before sliding most of this year. It closed $13.34 per share, up nearly more than 4 percent on the day after the announcement. It hit a high of $28.18 per share in October.
The stock of Bright Scholar, which peaked in October after its IPO in May,
has fallen nearly in half this year. (Source: Thomson Reuters Eikon)
Based in Foshan, Bright Scholar said the repurchase program would be funded from existing cash, cash equivalents, or future cash flow. The company had about $300 million in cash or cash equivalents at the end of February.
Bright Scholar, which operates 62 schools in eight Chinese provinces, served more than 34,000 students through the six months ended Feb. 28, the company said. The company reported a loss of $2.5 million, or 2 cents per share, on revenue of $51.1 million for the quarter ended February.