Technology firm iOCO has elected to keep buying back its own shares as part of an effort to boost shareholder value. The firm has the authority to repurchase up to 20% of its stock.
In a note, the group told shareholders it had evaluated the effects of the repurchase and “is of the view that proceeding with it is in the best interests of the company, while ensuring sufficient financial flexibility to deliver on its future strategic objectives and capital allocation priorities”.
The group — formerly EOH — began buying up its own share in August. Through a wholly owned subsidiary, it entered into a share repurchase programme in terms of which it may buy back up to a maximum of 1.8-million ordinary shares, having received authority to do so at a general meeting held on May 23 2025.
By reducing the number of outstanding shares, a company increases its earnings per share, which often translates to a higher stock price. This is particularly attractive when management believes the shares are undervalued.
When a company announces a share buyback, it can signal to the market that management is confident about the company’s future prospects.
Since August, iOCO has repurchased 4,292,027 shares, representing about 0.7% of its issued share capital. It now has 6,378,634 such equity units held as treasury shares.
In early December, the group received further authority to repurchase another 123,323,222 ordinary shares, representing 19.6% of the total issued share capital of iOCO.
The firm was one of the JSE’s best-performing tech stocks in 2025.
Through the year, the stock rose 75%, now trading at R4.29 and valuing it at R2.73bn.
At current prices, iOCO would have to spend about R540m if it were to buy up the whole block of shares. The group is using its cash reserves to fund the programme.
Between November 29 2025 and December 31 2025, the group repurchased 2,344,669 on the open market for R9,378,676 — excluding transaction costs.
iOCO assured its investors that for the next 12 months, as it repurchases more of its shares, the group will be able to continue servicing its debts; its assets will be more than its liabilities; share capital and reserves will be adequate; working capital will be adequate; the group has passed a liquidity test; and that “there have been no material changes to the financial position of the group”.
While doing well, this is a far cry from the lofty heights of more than R100 a share that the company once commanded.
The technology group has been lauded for the restructuring of its business, underscored by an intense approach to shareholder activism, and recently reported its first interim profit in three years.
Ravaged by scandal, the company has made a concerted effort to salvage its reputation following allegations of malpractice and tender irregularities under earlier leadership.
Disillusioned with the resulting erosion of value at the once-thriving tech firm, shareholders initiated a plan aimed at revitalising it in 2024. The strategy includes expanding the iOCO and international unit, cutting unnecessary costs and changing leadership if required.
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