Nasdaq-listed Melco Resorts & Entertainment Limited’s $500 million share buyback program accounts for about 15 percent of its market cap, notes UBS in its investment memo released following the company’s announcement.
UBS views the scheme as ‘positive’ for Melco Resorts and Melco International Development, ‘given a potential buyback from subsidiary Melco Resorts would improve Melco International Development’s liquidity position, and reflects management confidence on Melco’s company value’.
Melco Resorts announced on Monday a share repurchase program. Under the program, the company will repurchase up to $500 million worth of its ordinary shares and/or American depositary shares (ADS). The program will continue over a three-year period commencing from June 2nd, 2024.
The new share buyback scheme\ replaces an expired buyback program announced in June 2021.
Between 2021 and 2023, Melco repurchased 53 million ADS (about 11 percent of issued shares) at a total cost of about $411 million, of which 42 million (about 8.8 percent of issued shares) were acquired from parent Melco International Development at a cost of $324 million.
