Alibaba enlists a rise in its share prices by 11% on Tuesday. The eCommerce giant wants to increase its buyback program to $25 billion. It is nearly $10 more than the last time.
The share repurchase benefitted the company. It will be in effect for the two-year period. The period will be for March 2024.
Alibaba announced a repurchase program. The Chinese eCommerce giant brought back its shares. The company purchased approximately 56.2 million American depositary shares (ADRs). It had an extraordinary value of approximately $9.2 billion. ADRs are under the listed categories in the United States. They serve as the proxies for international corporations.
The Hangzhou-based e-commerce behemoth is trying to boost its investment. It is an attempt to bolster investor confidence. It is after its shares have lost around two-thirds of their value. The shares took a huge leap after the repurchase.
Alibaba came across a lot of obstacles with new changes in the market. The problems were like any other, including macroeconomic headwinds. There was continuous regulatory tightening from the Chinese government. This resulted in a $2.8 billion antitrust penalty last year. There were a lot of supply chain issues and labor constraints to deal with.
Toby Xu, Deputy Chief Financial Officer, stated, “Alibaba’s stock price does not fairly reflect the company’s value given our robust financial health and expansion plans.”
In the last 14 months, the Chinese government brought forward various changes in the law. It implemented broad new laws in the technology industry. It was sudden and came without warning. This completely undermined investor confidence. It also resulted in the loss of billions of dollars in value. Alibaba also announced its next chairman. Weijian Shan takes control of the executive chairman of Hong Kong-based investment firm PAG. It is to the board of directors as an independent director. It will be effective from March 31.
Shan will be a member of the audit committee of the board. He is going to take over for Börje Ekholm. He was the CEO of telecoms equipment behemoth Ericsson. He will be retiring from Alibaba’s board.