iQSTEL Inc (NASDAQ:IQST) saw its stock rise about 20% in premarket trading on Monday after the company’s board authorized a program to repurchase up to 1,000,000 shares of common stock. The company said the funding source for the program will be cash dividends it receives from QXTEL, one of its operating subsidiaries.
According to the announcement, the Board approved the repurchase authorization because it believes the current market valuation does not fully reflect the value of the business platform the company has developed. The company operates across multiple technology sectors and highlighted its presence in Telecom, Fintech, AI, Cybersecurity, and Digital Services.
iQSTEL described its commercial footprint as extending to more than 600 telecom operators worldwide, providing access to roughly 2.3 billion end users. Management framed the buyback as a shareholder-value measure in light of what it views as a gap between share price and underlying fundamentals.
"We believe the recent decline in IQSTEL’s share price is disconnected from the underlying value of our business," said Leandro Iglesias, CEO of iQSTEL. "Given these fundamentals, our Board believes that repurchasing shares at current market prices represents an attractive opportunity to create value for our shareholders."
In a separate disclosure, iQSTEL said it signed a Binding Memorandum of Understanding to acquire a 51% interest in Ultranet Telecom Group. The company cited Ultranet’s audited financial statements in estimating that the transaction would increase iQSTEL’s net income from operations by approximately fourfold. Based on Ultranet’s FY 2025 audited financial statements, the acquisition is expected to contribute approximately $4.5 million in annual net income.
The company noted that full terms and details of the share repurchase program will be disclosed in a Current Report on Form 8-K, which it expects to file with the U.S. Securities and Exchange Commission.
The repurchase authorization and the planned Ultranet transaction together form the basis of management’s case that the company’s near-term financial profile and shareholder value could be enhanced. The repurchase depends on available cash dividends from QXTEL, while the projected earnings uplift from Ultranet is presented as an expectation derived from audited financials.
Context and next steps
Investors will likely look to the forthcoming Form 8-K for the detailed mechanics of the repurchase program, including timing and any limits on execution. The Ultranet deal remains described in an MOU and the company’s projections regarding net income contribution reference Ultranet’s audited statements for FY 2025.