What do share buybacks mean?

Recently, one stock has dominated conversations among investors in the Philippines: PLUS.

- KEITH LIM

This stock has become the hottest topic in the local market, and for good reason.

PLUS saw massive profit growth, jumping from about P1.2 billion of earnings in 2022 to an impressive P12.5 billion in 2024. Investors quickly noticed this, sending PLUS’ share price soaring from around 1.5 per share in 2022 to a peak of P65 in 2025.

But then, the unexpected happened. In July, Sen. Sherwin Gatchalian introduced a bill proposing strict new regulations on the online gaming sector. His proposals included significant measures like removing GCash integration with gambling apps and raising the minimum gambling age from 18 to 21. This news shook the market, causing the share price of PLUS to plunge dramatically from its high of P65 down to a low of around P20 per share.

During this sharp decline, PLUS made a notable announcement. On July 7, the company disclosed to the Philippine Stock Exchange (PSE) that it planned to buy back shares worth a total of B6 billion. For many investors, especially those new to the market, this raises a question: What is a share buyback, and how will it affect your portfolio?