Mobile games developer Huuuge stock leaps on buyback plans
16/02/2023 08:23
Feb 16 (Reuters) - Mobile games developer Huuuge Inc
HUGP.WA plans to launch an up to $150 million share buyback
this quarter following a review of strategic options, it said
late on Wednesday, sending the stock sharply higher at the
market opening.
U.S.-registered Huuuge, which debuted in Warsaw in 2021,
launched the review of strategic options in August and shortly
afterwards suspended an earlier buyback.
It said could still postpone or cancel the new buyback
depending on market conditions and the company's circumstances.
The stock jumped 8% by 0816 GMT on Thursday, hitting its
highest price in over a year.
Huuuge said in a statement it had concluded its "optimal
strategy at this time" was to remain a publicly-listed company
and that continued focus on the current strategy was in the best
interests of the company and its stock-holders.
It added it was working on a plan to improve its overall
performance and productivity "by flattening hierarchies, merging
teams where appropriate and refocusing on agility".
Piotr Bogusz from Erste Group wrote in a note to clients the
absence of "an offer to purchase shares from an outside investor
could be somewhat of a disappointment to the investors".
But he said the market was likely to welcome the buyback and
estimated a price per share in the range of 29-30 zlotys,
implying a 22-26% premium to the last close.
Huuuge has yet to disclose price details of the buyback.
Last week, the maker of Huuuge Casino and Billionaire Casino
games reported preliminary core profit up 28% to $82 million
following lower marketing spend.
(Reporting by Anna Pruchnicka; editing by Barbara Lewis)
((anna.pruchnicka@thomsonreuters.com; +48 58 769 65 14;))