Afya Stock Gains Following Plan To Repurchase 5.8% Shares Of Its Free Float

Author: Shivani Kumaresan | March 24, 2023 09:37am

Medical education group Afya Ltd (NASDAQ:AFYA) Board of Directors has approved a new share repurchase program for repurchasing up to 2 million of its shares.
The approval represents approximately 5.8% of its free float in accordance with the conditions established by the Board of Directors on Mar. 23, 2023.
Under the plan, the independent broker-dealer BofA Securities, Inc. will act as Afya's agent to repurchase the shares in open market transactions, in privately negotiated transactions or otherwise in compliance with applicable securities laws and regulations, including Rules 10b-18 and 10b5-1, until the earlier of the completion of the repurchase and Dec. 31, 2024.
The company plans to fund the share buyback with existing funds, future dividends to be received from Afya Participações and/or strike price funds to be received in connection with any option exercises under its stock option program.
Brazil-based Afya held R$1.1 billion in cash and equivalents as of Dec. 31, 2022.
Price Action: AFYA shares are trading higher by 7.13% at $10.67 on the last check Friday.