Qudian to Repurchase Up to $195 Million in Shares From Citibank
The stock in Qudian Inc. (NYSE: QD) rose more than 2 percent on Friday to $7.83 per American depositary share after the company announced it has entered into a forward share repurchase agreement with Citibank.
The Xiamen-based provider of online small consumer credit products said in a statement today that it will repurchase up to $195 million worth of its outstanding ADSs.
The company said the plan is part of an existing program to buy back up to $300 million of its ADSs, under which it has already repurchased approximately $103 million worth of the shares.
"We continued to deliver solid quarterly results driven by strong momentum in our open-platform initiative and better-than-expected loan book growth," Min Luo, the founder, chairman and chief executive officer of Qudian, said in the announcement. "Given the disconnect between our strong business fundamentals and stock price, we are stepping up our share repurchase plan. This reflects our confidence in our growth prospect and our continuous commitment to enhancing shareholder value," he added.
In June, Qudian said it was selling up to $300 million of its convertible senior notes. The notes, due June 1, 2026, will bear interest of 1 percent per year, payable semi-annually in arrears on July 1 and Jan. 1 of each year, according to the report. At the time, Qudian said it planned to use the proceeds from the sale to pay the cost of certain capped call transactions and general corporate purposes, including strategic investments in complementary businesses, development of the platform and potential share repurchases.