Tencent repurchased a total of HKD 88.26 billion in the first three quarters, setting a new high for the same period in history

Zhitong
2024.10.08 11:57
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According to public information from the Hong Kong Stock Exchange, Tencent Holdings repurchased HKD 35.9 billion in the third quarter. In the first three quarters of this year, Tencent has repurchased a total of 250 million shares, with a total repurchase amount of HKD 88.26 billion, reaching a historical high for the same period. As of the close on October 7th, Tencent's repurchase amount for this year has exceeded HKD 89 billion. In March of this year, Tencent disclosed its plan to increase the share repurchase scale from HKD 49 billion in 2023 to over HKD 100 billion in 2024. As of October 8th, Tencent's total share capital is 9.28 billion, a decrease of 330 million shares from the end of 2021, reaching the lowest level in a decade. Tencent's continuous "cancellation-style repurchase" behavior has increased the intrinsic value per share and enhanced shareholder returns. In addition, the large-scale repurchase has offset the impact of major shareholder Prosus reducing its holdings. In the third quarter, Prosus sold 31.6 million Tencent shares, a decrease in selling intensity compared to the second quarter, accounting for only 33% of Tencent's repurchased shares during the same period. The selling pressure from major shareholders on the secondary market has been almost completely offset. In terms of the secondary market, Tencent Holdings' stock price rose by nearly 20% in the third quarter, with a cumulative increase of over 51% so far this year

According to the information publicly available on the Smart Finance app, the Hong Kong Stock Exchange disclosed that Tencent Holdings (00700) repurchased HKD 35.9 billion worth of shares in the third quarter. In the first three quarters of this year, Tencent has repurchased a total of 250 million shares, with a total repurchase amount of HKD 88.26 billion, reaching a historical high for the same period. As of the close on October 7th, Tencent's repurchase amount for this year has exceeded HKD 89 billion.

In March of this year, Tencent disclosed its plan to increase the scale of share repurchases from HKD 49 billion in 2023 to over HKD 100 billion in 2024. As of October 8th, Tencent's total share capital was 9.28 billion, a decrease of 330 million shares from the end of 2021, reaching the lowest level in the past decade. Tencent's continuous "cancellation-style repurchase" behavior has increased the intrinsic value per share and enhanced shareholder returns.

Furthermore, the large-scale repurchases have offset the impact of the reduction in holdings by major shareholder Prosus. In the third quarter, Prosus sold 31.6 million Tencent shares, with the reduction in holdings weakening compared to the second quarter, accounting for only 33% of the shares repurchased by Tencent during the same period. The selling of shares by major shareholders has almost been completely offset, alleviating the liquidity pressure on the secondary market.

In the secondary market, Tencent Holdings' stock price rose by nearly 20% in the third quarter, with a cumulative increase of over 51% since the beginning of this year

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