JDW Sugar to buy back 2m shares

The share price of JDW Sugar Mills Ltd hit the upper limit for intraday gains on Monday after the company told investors it’s going to buy back and cancel up to two million of its shares from the stock market. A share buyback is an indication that the company likes its stock enough to purchase it from the general public. The intended volume of the share buyback will reduce the company’s free float — shareholding that’s in the hands of public investors as opposed to locked-in shares held by the sponsors — by more than one-fifth. Speaking to Dawn, JS Global Assistant Vice President Waqas Ghani said the company’s sponsors seem to expect a higher level of profitability in the next two years. “Sugarcane production is going to be strong following nationwide floods,” he said, adding that higher productivity is likely to reflect in earnings growth. The company will start buying back its shares on Nov 11. It will keep repurchasing the shares until May 2, 2023, or the date when the targeted buyback volume is achieved.