CapitaLand Investment Dominates 2024 Share Buybacks with Over $1 Billion Spent

Singapore-listed companies have ramped up share buybacks in 2024, with CapitaLand Investment (CLI) leading the charge, spending a staggering S$343 million by November 13. In total, nearly 80 primary-listed firms have repurchased shares this year, pushing the combined buyback consideration to an impressive S$1.03 billion.

CLI Tops the STI Buyback Chart

CapitaLand Investment has spearheaded buyback activities among Straits Times Index (STI) stocks, acquiring 126.2 million shares at an average price of S$2.72. This effort reflects its strategic capital management goals, with CLI highlighting the importance of share repurchases in improving return on equity (ROE). The firm also achieved its ambitious target of recycling S$3 billion in assets for FY2024, further strengthening its financial position.

With its funds under management (FUM) surging to S$102 billion, CLI aims to double this to S$200 billion within five years, signaling confidence in its growth trajectory. Meanwhile, CLI’s net debt-to-equity ratio improved to 0.54 as of Q3 2024, underscoring prudent financial management.

Yangzijiang Financial Holding Leads Non-STI Buybacks

Yangzijiang Financial Holding (YZJF) topped the buyback tally among non-STI primary-listed companies, purchasing 89.6 million shares at an average price of S$0.324 per share. The firm’s buyback strategy is driven by a focus on shareholder returns and market conditions, with its stock trading at attractive valuations.

YZJF also achieved a milestone in geographical diversification, balancing its assets under management (AUM) between China and Singapore. The move aligns with the company’s goal of reducing reliance on China’s debt investments, which now account for just 32% of its total AUM of S$4.07 billion.

Rising Momentum in 2024

The S$1.03 billion buyback tally for 2024 surpasses the S$740 million recorded in 2023, reflecting heightened activity across the Singapore market. Analysts attribute the surge in buybacks to favorable market conditions and strategic efforts by companies to enhance shareholder value.

A significant portion of buybacks occurred during the first half of the year, coinciding with a 3% gain in the Straits Times Index. The index saw an additional 12% rise in the second half, highlighting strong market momentum.

Broader Implications

Share buybacks have emerged as a vital tool for listed companies, serving purposes ranging from employee compensation to long-term capital management. With heavyweights like CLI and YZJF setting the pace, other companies may follow suit, leveraging buybacks to bolster investor confidence and drive growth.

As the year nears its end, the market’s focus shifts to CLI’s upcoming institutional investor day on November 22, where the firm is expected to share more insights into its strategic direction.

Stay tuned for updates on Singapore’s corporate landscape as companies continue to innovate and adapt in an evolving market.

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