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 on Feb. 28, 2025, citing significant undervaluation of its share price in the local bourse.
This is the first buyback program in SM Investments’ corporate history.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.
The country’s leading conglomerate of the Sy Group noted that SMIC shares closed at PhP780 per share on February 27, 2025, translating to a price-earnings ratio of 11.5x based on 2024 earnings.
“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.
“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.
