(By Balaseshan) Ambow Education Holding Ltd. (NYSE:AMBO) stock jumped 25% after the board of the provider of educational and career enhancement services in China approved $10 million share repurchase program.
Under the program, Ambow is authorized to repurchase up to $10 million worth of its outstanding American Depositary Shares (ADSs) representing its Class A ordinary shares from time to time in open market transactions, in block trades or otherwise.
Chief Executive Jin Huang believes that the company's ability to generate cash would remain strong and has confidence in its fundamentals.
The timing and amount of any ADSs repurchased will be determined by Ambow's management, based on its evaluation of market conditions, the trading price of the stock and other factors, as well as subject to relevant rules under the Securities Exchange Act of 1934, as amended.
The company also will effect repurchase transactions in compliance with its insider trading policy. The company plans to use available cash balances to fund the share repurchase program.
The company believes its current share price represents an attractive investment opportunity and that it is prudent to establish a stock repurchase program at this time. Ambow remains steadfast in its confidence in fundamentals as reflected with this share repurchase program.
AMBO is trading up 8.44% at $2.44 on Friday. The stock has been trading between $2.18 and $8.15 for the past 52 weeks.