PASAY CITY, PHILIPPINES, 28 February 2025—SM Investments Corporation (SMIC), the parent company of the SM Group, has approved a share buyback program of up to 60 billion pesos (approximately US$ 1 billion), following the Board Meeting this morning. This is the first buyback program in SM Investments’ corporate history.
“This major undertaking is in recognition of the significant under-valuation of SM Investments’ share price. In the current market we trade well below our historical valuation multiples, which do not reflect the performance and future growth potential of the Group,” said Frederic C. DyBuncio, President and CEO of SM Investments Corporation.
SMIC shares closed at 780 pesos per share on February 27, 2025, translating to a price-earnings ratio of 11.5x based on 2024 earnings.
The buyback program intends to create value for the company’s shareholders by reducing the number of shares outstanding, thereby improving future earnings per share.
“We always aim to create and return value to our shareholders. This program intends to do so by authorizing the buyback of up to approximately 6% of our shares outstanding,” Mr. DyBuncio continued.
The company will execute the buyback program in the open market with appropriate disclosures submitted to the SEC and the PSE.