The board of directors of Kohat Cement has decided to buy back 5 million ordinary shares of the company having paid-up or face value of Rs. 10 per share.
According to the stock filing, the planned buyback of shares compresses 2.4 percent overall share volumes of the company.
The shares shall be purchased from time to time at the spot or current price acceptable to the company prevailing during the purchase period from March 1 to August 19 in accordance with regulation 8 (2) of the listed companies.
The purchase of the shares shall be made in cash and shall be out of the distributable profits or reserves, the stock filing said.
The repurchase of the share will improve the breakup value of the issued ordinary shares of the company including the revenues of the company with respect to its shares. Moreover, this activity will give an opportunity to investors to buy back shares of the company that wants to liquidate its investments.