DigiPlus launches P6-B buyback program after stock market slump

MANILA, Philippines –  Former stock market darling DigiPlus Interactive Corp. announced a P6-billion share buyback program just a week after a lawmaker proposed stricter rules on the online gaming sector, taking a massive toll on the company’s share price and erasing its gains the past year.

In a stock exchange filing early on Monday, the Eusebio Tanco-led operator of BingoPlus said its board of directors had approved the share repurchase program.

READ: It’s “business as usual,” says battered DigiPlus

It is valid over a 12-month period and may be renewed, subject to board approval.

“The share repurchase program demonstrates our firm confidence in DigiPlus’ long-term growth and solid fundamentals,” DigiPlus chair Tanco said.

“By strategically deploying our capital through this buyback, we are sending a clear signal that DigiPlus is committed to delivering sustainable returns for shareholders while remaining well-positioned to pursue expansion and innovation,” Tanco added.

Companies typically buy back their shares when they see that the market is undervaluing its stocks.

In its case, DigiPlus’ shares plunged by 23.87 percent to close at P29.50 on Friday.

This came after Sen. Sherwin Gatchalian filed a bill proposing stricter regulations on online gaming, including a minimum top-up threshold of P10,000 and preventing e-wallet platforms like GCash and Maya from acting as payment platforms. The lawmaker said these were meant to discourage gambling among poorer households./tad