FinVolution Group, a leading fintech platform, today announced that the board of directors of the Company has authorized a new share repurchase program effective on August 29, 2023, under which the Company is approved to repurchase its own Class A ordinary shares in the form of American depositary shares (“ADS”) with an aggregate value of up to US$150 million until August 29, 2025.
Mr. Tiezheng Li, President and Chief Executive Officer of FinVolution Group, said, “We are firmly committed to enhancing shareholder value. Since the initial launch of our first share repurchase program on March 21, 2018 through June 30, 2023, we have cumulatively deployed approximately US$228.6 million to purchase the Company’s ADSs. We believe that at present, the mixed domestic macroeconomic environment in combination with our rapid growth in the flourishing international markets and our strong balance sheet presents an attractive opportunity to return value to shareholders. This program also reflects our confidence in the Company’s business operations and outlook.”
“Our Board approved the New Program in light of the Company’s effective business strategies and outstanding growth potential,” said Mr. Shaofeng Gu, Chairman and Chief Innovation Officer of the Company. “We continue to view FinVolution as an excellent investment, particularly at our current market valuation, and share buybacks serve as an effective capital management tool in the current environment. With our strong liquidity position and financial flexibility, we believe we are well-positioned to capitalize on this buying opportunity while executing our ‘Local Focus, Global Outlook’ strategy to deliver long-term sustainable growth for all our stakeholders.”
The timing and actual number of shares repurchased will be determined by the management at its discretion and will depend on a variety of factors, including, but not limited to, share price, trading volume and general market conditions, along with the Company’s capital allocation strategy to prioritize investments to grow the business over the long term and other factors, as well as subject to the applicable rules of Rule 10b5-1 and/or Rule 10b-18 under the Securities Exchange Act of 1934, as amended. FinVolution plans to fund the repurchases out of its existing cash balance or future cash provided by its operating activities.