Vipshop Holdings Limited (NYSE: VIPS) has launched the share buyback program under which the Company may buy back up to US$1 billion of its American depositary shares or Class A ordinary shares over the next 24-month period after the authorization of the Boards of directors. Shares of Vipshop surged 6.62% as the company gained +0.63 during the pre-market trading session of Thursday.
The Company intends to develop and execute such a share buyback in compliance with appropriate Securities Exchange Act of 1934, as amended, rules and procedures, as well as the Company’s insider trading policy. Depending on market conditions and applicable rules and regulations, the Company’s planned buybacks may be done in the open market at current market prices, in private placement transactions, in block trades, and/or through other legally permitted mechanisms.
Furthermore, the buybacks will be funded from the Company’s current cash balance. The Company’s board of directors will evaluate the share buyback regularly and may approve changes to the terms and amount of the program. Additionally, the timing and dollar amount of buy-back transactions will be dependent on the SEC Rule 10b-18 and/or Rule 10b5-1 requirements.
Vipshop Holdings Limited has earned recognition as a leading Chinese online discount retailer. Vipshop provides consumers in China with high-quality, well-known branded products at a big discount on retail rates. The Company has rapidly grown a large and expanding base of customers and brand partners since its inception in August 2008.