Lee Feed Mill, a Thai feed manufacturer, saw their shares jump the most they had seen in eight years, in Bangkok trading yesterday, as a result of the company stated that it would buy back its shares at above market prices.
The stock soared 22%, which was their biggest gain since November 2003.
Profits at Thai feed manufacturers which includes Lee Feed Mill and Charoen Pokphand Foods (the nation’s biggest), have went up as increased sales of seafood and poultry boosted demand.
Lee Feed are planning to spend as much as 500 million baht, around $16 million USD to buy back 100 million shares from current shareowners, the company said in regulatory filing today. The firm will offer to purchase those stocks at 5 baht each, 45% more than yesterday’s closing price for the shares.
Lee Feed Mill’s available cash has more than quadrupled to 665.8 million baht as of Sept. 30, this is up from 148 million baht at the close of 2008. Earnings in the 9 months of 2011 increased 14% up to 216.5 million baht, according to the company’s filing.
Approximately 76.2 million shares were traded, 120 times greater than the regular daily average across the previous 3 months. Lee manufactures feed for pets, livestock and aquaculture, according to the Lee Feed’s website.