Riyadh, Saudi Arabia — Leejam Sports Company’s board has recommended approving a Leejam Sports share buyback plan to repurchase up to 6.3% of its issued shares—approximately 3.3 million—to be held as treasury stock. This recommendation reflects management’s belief that the current share price undervalues the company’s worth. It also signals confidence in Leejam’s long-term outlook.

Leejam Sports Share Buyback Strategy: Board Advocates Treasury Stock Acquisition

Under the proposed Leejam Sports share buyback program, the company will finance the repurchase through internal cash or bank loans. Treasury shares represent only 0.3% of total shares, well below the 6.3% limit Tadawul rules allow. The new program will remain within that cap.

Leejam Equity Buyback Plan: Solvency Conditions and AGM Approval

The Leejam Sports share buyback plan will go to shareholders for approval at an upcoming Extraordinary General Assembly. The plan will fully comply with Saudi companies’ laws and Tadawul’s corporate action rules. Before the buyback begins, an auditor will confirm that Leejam meets all solvency conditions.

Market Impact: Treasury Shares Will Not Carry Voting or Dividend Rights

Treasury shares acquired through the buyback will not have voting rights or dividend entitlement while held. As a result, the plan is expected to strengthen shareholding concentration, boost earnings per share, and potentially lift the stock price by reducing its market float.

 

 

THE SAUDI STANDARD’S VIEW: Leejam’s Buyback Signals Confidence and Shareholder Alignment

Leejam Sports Company’s proposal to repurchase 3.3 million shares—or 6.3% of its issued capital—as treasury stock marks a strategic shift focused on preserving shareholder value and reinforcing confidence in long-term growth.

  • This move shows a strong board-level belief in the company’s fundamentals. It aligns Leejam’s internal financial position with investor expectations in a shifting valuation landscape.
  • Funding the buyback through internal resources or credit lines highlights Leejam’s liquidity strength. Moreover, it reflects fiscal discipline despite ongoing market volatility.
  • The company aims to raise earnings per share by reducing capital and strengthening investor alignment. This mirrors best practices followed by top global firms and is now increasingly seen among listed Saudi companies.
  • Leejam is also setting a governance benchmark. The company supports Tadawul’s evolution into a more transparent, investor-driven exchange by strictly observing solvency audits, shareholder consultation, and regulatory limits.

This Leejam Sports share buyback underscores the company’s dual role as a fast-growing fitness leader and a model for capital market maturity. It addresses short-term pricing inefficiencies while advancing Vision 2030 goals of greater financial depth among private sector champions.

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