Mobile games developer Huuuge stock leaps on buyback plans
Technology
It says working on plan to improve overall performance and productivity 'by flattening hierarchies'
(Reuters) - Mobile games developer Huuuge Inc (HUGP.WA) plans to launch an up to $150 million share buyback this quarter following a review of strategic options, it said late on Wednesday, sending the stock sharply higher at the market opening.
US-registered Huuuge, which debuted in Warsaw in 2021, launched the review of strategic options in August and shortly afterwards suspended an earlier buyback.
It said could still postpone or cancel the new buyback depending on market conditions and the company's circumstances. The stock jumped 8% by 0816 GMT on Thursday, hitting its highest price in over a year.
Huuuge said in a statement it had concluded its "optimal strategy at this time" was to remain a publicly-listed company and that continued focus on the current strategy was in the best interests of the company and its stock-holders.
It added it was working on a plan to improve its overall performance and productivity "by flattening hierarchies, merging teams where appropriate and refocusing on agility".
Piotr Bogusz from Erste Group wrote in a note to clients the absence of "an offer to purchase shares from an outside investor could be somewhat of a disappointment to the investors".
But he said the market was likely to welcome the buyback and estimated a price per share in the range of 29-30 zlotys, implying a 22-26% premium to the last close.
Huuuge has yet to disclose price details of the buyback.
Last week, the maker of Huuuge Casino and Billionaire Casino games reported preliminary core profit up 28% to $82 million following lower marketing spend.
