GigaCloud Technology Inc Announces $46 Million Share Repurchase Program
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EL MONTE, Calif., Sept. 03, 2024 (GLOBE NEWSWIRE) -- GigaCloud Technology Inc (Nasdaq: GCT) (“GigaCloud” or the “Company”), a pioneer of global end-to-end B2B technology solutions for large parcel merchandise, today announced that its board of directors has approved a share repurchase program to repurchase up to $46 million of its Class A ordinary shares over the next 12 months.
“We believe our shares present a compelling opportunity at their current price, and share repurchases will represent a value-enhancing deployment of capital for GigaCloud and its shareholders,” said Larry Wu, Founder and Chief Executive Officer of GigaCloud. “While we anticipate continued industry-wide economic headwinds in the immediate near term, we firmly believe that the digitization of the global supply chain for large parcel merchandise is still in its early stages and holds immense potential for transformation and growth. This new repurchase plan underscores our confidence in GigaCloud’s long-term growth and our ability in executing the Company’s strategic initiatives while maintaining our disciplined approach to capital management.”
“In fiscal year 2023, GigaCloud generated $133.5 million cash from operating activities. We utilized $86.6 million for strategic acquisitions and ended 2023 with $46.9 million unspent,” commented Erica Wei, interim Chief Financial Officer. “With over $200 million in cash, cash equivalents and liquid investments, no external debt and operations generating positive cash flows, we are well positioned to allocate this $46 million to a new share repurchase program as we remain focused on delivering value to our long-term shareholders. Subject to market conditions, GigaCloud will enter into a 10b5-1 plan for share repurchases after the conclusion of this quarter in accordance with applicable rules and regulation.”
Under the share repurchase program, the Company may purchase its ordinary shares through various means, including open market transactions, privately negotiated transactions, block trades, any combination thereof or other legally permissible means. The Company may effect repurchase transactions in compliance with Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The number of shares repurchased and the timing of repurchases will depend on a number of factors, including, but not limited to, price, trading volume and general market conditions, along with the Company’s working capital requirements, general business conditions and other factors. The Company’s board of directors will review the share repurchase program periodically, and may modify, suspend or terminate the share repurchase program at any time. The Company plans to fund repurchases from its existing cash balance.