IBEX Ltd reported a 3% increase in its share price Wednesday following the announcement of a self-tender initiative. The company said its Board of Directors has authorized repurchases of up to $20 million of common stock to be completed within the coming 12 months.
According to the company, the repurchase program will be financed using the firm’s current cash reserves together with free cash flow. Repurchases may be carried out in several ways depending on prevailing market conditions, including open market transactions at market prices, privately negotiated transactions, block trades, or other methods permitted by law and regulation.
In a statement accompanying the announcement, Bob Dechant, ibex CEO, said, "Our new repurchase program reflects our confidence in the strength of our business, financial position, and growth trajectory." The company emphasized that the timing and size of any repurchase transactions will conform to SEC Rule 10b-18 and Rule 10b5-1 guidelines.
The Board will periodically review the repurchase program and retains the authority to change its terms, alter the authorized size, suspend activity, or discontinue the program entirely at any time. IBEX also noted that the program does not create an obligation to purchase any specific number of shares and may be halted or ended at the company’s discretion.
Management said the repurchase initiative will be implemented in a manner consistent with the company’s capital allocation priorities, which continue to emphasize investments intended to support growth. The company reiterated that executing the buyback will be balanced with its ongoing funding and investment plans.
This announcement follows the internal decision by IBEX’s Board to allocate up to $20 million for repurchases over a 12-month period, a plan that the company intends to fund from available cash and generated free cash flow while proceeding in accordance with applicable securities rules and internal capital-allocation strategy.