DigiPlus Launches P6-Billion Buyback Program Amid Stock Market Decline

Former stock market darling DigiPlus Interactive Corp. in the Philippines has launched a P6-billion share buyback program following a significant drop in its share price due to proposed stricter rules on the online gaming sector. The company's board of directors approved the share repurchase program, which is valid for 12 months and may be renewed subject to board approval. DigiPlus chair Eusebio Tanco expressed confidence in the company's long-term growth and solid fundamentals through this buyback initiative, aiming to deliver sustainable returns for shareholders and support expansion and innovation.

Companies often repurchase their shares to address undervaluation in the market, and DigiPlus' shares plummeted by 23.87 percent to P29.50 after Sen. Sherwin Gatchalian introduced a bill proposing tighter regulations on online gaming. The bill includes measures like a minimum top-up threshold of P10,000 and restrictions on e-wallet platforms as payment methods to deter gambling in low-income households.

According to the source: Inquirer.net.