Following a study of strategic options, mobile game maker Huuuge Inc (HUGP.WA) plans to start a $150 million share buyback this quarter, the company announced late on Wednesday, sending the stock substantially higher at the market’s opening.
Huuuge, a company with U.S. registration that will make its debut in Warsaw in 2021, started reviewing its strategic options in August and abruptly halted an earlier buyback after that.
Depending on the state of the market and the situation facing the company, the fresh repurchase could still be delayed or canceled, it was stated.
By 08:16 GMT on Thursday, the stock had increased 8% and reached its highest price in almost a year.
In a statement, Huuuge said it had come to the conclusion that maintaining its public listing was the “ideal strategy at this time” and that maintaining the existing focus was in the best interests of the business and its stockholders.
It said that it was working on a strategy to boost productivity and overall performance “by flattening hierarchies, combining teams when needed, and focussing on agility.”
The absence of “an offer to purchase shares from an outside investor could be rather disappointing to the investors,” Erste Group’s Piotr Bogusz wrote in a note to clients.
However, he predicted that the buyback would be well received by the market and projected a price per share in the range of 29 to 30 zlotys, which would represent a 22-26% premium to the previous closing.
Huuuge has not yet released the buyback’s price information.
The company that created the video games Huuuge Casino and Billionaire Casino last week announced an initial core profit that increased by 28% to $82 million thanks to fewer marketing expenses.