Shares of Bairong Inc., a leading AI-powered cloud service provider, surged 5.26% on Monday morning after the company announced an expansion of its share repurchase program.
In a regulatory filing, Bairong resolved to increase the size of its share buyback to a maximum of HK$375 million in value, up from the previous limit. The company also extended the duration of the repurchase plan until May 31, 2025, giving it more time to buy back its shares from the market.
The move to repurchase more of its own shares is seen as a positive signal by investors, as it reduces the number of outstanding shares and boosts earnings per share. Share buybacks are often viewed as a way for companies to return excess cash to shareholders and demonstrate confidence in the company's future prospects.
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