EHang Holdings Limited (EH, Financial) has announced that its board of directors has approved a stock buyback program valued at $30 million. This initiative will span 12 months, allowing the company to repurchase its American Depositary Shares (ADS) or common stock. The buyback will be funded through existing cash reserves and cash generated from operations.
The $30 million allocation for the buyback represents approximately 3.1% of EHang's market capitalization, which stands at $967 million as of November 21, 2024. This strategic move is expected to enhance shareholder value by reducing the number of shares outstanding, thus potentially increasing the value of the remaining shares.
Following the announcement, EHang's stock saw a pre-market increase of over 1% on Friday.
