Society Pass Incorporated (Nasdaq: SOPA) has seen a positive increase in its stock price. During Friday’s after-hours session, the stock price rose by 5.36% to $1.18. This can be attributed to the company’s recent announcement that it has launched a stock repurchase program this month.
How will SOPA get through it?
A stock repurchase program for up to $2 million has been approved by the Board of Directors of Society Pass (SOPA), effective on 01 February 2023. As a result of the approval of the share repurchase program, Society Pass will be able to generate significant shareholder value for its shareholders.
Society Pass is known for being a leading player in Southeast Asia’s growing fintech industry, offering a data-driven loyalty, e-commerce and financial technology ecosystem. This move to repurchase stocks is a strong indication of the company’s confidence in its future growth and financial stability.
On December 31, 2022, SOPA had approximately $19 million in cash on hand and no long-term debt. As of 31 January 2023, SOPA’s market capitalization was undervalued at $1.11. This represents an extremely attractive opportunity to buy its common shares at a substantial discount.
SOPA has a strong cash position, equivalent to $0.70 per share, and strong revenue generation, which enables it to acquire paradigm-shifting fintech and e-commerce companies in SEA and fund a stock repurchase program based on its capital position and strong revenue generation.
According to applicable federal securities laws, Society Pass engaged ThinkEquity LLC periodically to purchase its common stock in the open market at prevailing market prices, or through privately negotiated transactions.
Under the program, management will make decisions about when and how much stock will be repurchased, based on price, cash availability, general business conditions, and other investment opportunities.
SOPA is increasing its presence in the Philippines:
Society Pass (SOPA)-owned NusaTrip, Indonesia’s first IATA-certified online travel agency (OTA), officially opened a second Southeast Asia (SEA) regional office in the Philippines last month. The Philippines is an essential market for SOPA owing to its size and potential for tourists and foreign workers. By expanding NusaTrip, SOPA hopes to become the travel hub that connects overseas Filipinos with their homeland and will be a promotional partner for the Philippines tourism boards.