PETALING JAYA: CTOS Digital Bhd
has cancelled 15.45 million treasury shares, representing 0.67% of its total issued share capital, as part of its ongoing share buyback programme.
The company said the cancellation follows the repurchase of 34.92 million shares, or 1.51% of its share capital, in 2025.
Of the total shares repurchased, 19.47 million shares were cancelled in 2025, while the remaining 15.45 million shares were cancelled this year.
CTOS Digital said the share buyback programme is intended to enhance earnings per share (EPS), optimise its capital structure and return surplus capital to shareholders.
The group added that the exercise improved its return on equity to 17.3% in 2025 from 16.4% before the share buybacks.
The share buybacks were funded through internally generated funds and borrowings.
As at Dec 31, 2025, the group had retained profits of RM178mil, while its gearing ratio stood at 14% as at the first quarter of 2026.
Group chief executive officer Ankur Sehgal said the company's capital management approach is guided by the principle that every ringgit of capital deployed must generate superior long-term value for our shareholders.
“The share buyback programme, executed at prices we believe are below intrinsic value, combined with our commitment to 60-70% dividend payout ratio, reflects the Board's and Management’s deep conviction in the quality and resilience of our business,” he said in a statement.
CTOS Digital said it will seek shareholder approval at its annual general meeting on June 25 to renew its share buyback mandate, which allows it to repurchase up to 10% of its issued share capital.
