VOYAH AUTO (07489) rose more than 9% again, bringing its cumulative increase for the month to over 40%. At the time of writing, the stock was up 5.95% to HK$6.94, with a turnover of HK$85.66 million.
The move follows an announcement from VOYAH AUTO stating that its controlling shareholder, Dongfeng Motor Group, through its subsidiary Dongfeng Hong Kong, plans to increase its holdings of the company's H-shares over the next 12 months. The initial phase of the buyback is expected to total no more than RMB250 million.
This comes just 15 days after Dongfeng Asset Management announced a similar plan to increase its stake in VOYAH AUTO's H-shares, also with an initial phase not exceeding RMB250 million. Combined, the major shareholder has announced plans to buy back shares worth up to RMB500 million within a short period.
Notably, on April 14, VOYAH AUTO officially announced its H-share full circulation plan, proposing to convert certain domestic shares into H-shares to achieve full circulation. The company stated that this move would significantly expand the scale of share circulation, as all originally non-tradable domestic shares would be converted into listed H-shares, multiplying the company's free-floating share capital.
Additionally, the depth of share trading is expected to improve substantially, effectively addressing liquidity challenges such as "volume without price or price without volume." This will reduce bid-ask impact costs and attract institutional investors and long-term capital allocation.
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