In Canada, a substantial issuer bid (SIB) is the formal term for a tender offer to repurchase shares. SIBs can be used to buy back an unusually large amount of shares beyond what’s allowed with a typical NCIB buyback program (Normal Course Issuer Bid). Tender offers may be a sign of improving corporate governance or savvy management taking advantage of their stock’s undervaluation. Or, large buybacks might simply be misleading demonstrations of confidence in a company’s prospects.
We’ve compiled a cheat sheet of Canadian stocks that are in the process of buying back a substantial portion of their float. We looked at the past 3 months of filings to find stocks that are:
- In the process of a SIB
- Have completed a SIB and continue to repurchase shares
The market capitalizations of the 5 stocks we’ve found range from C$133M to C$3,186M, so there should be a reasonable amount of liquidity for the largest stocks in this group. Without further ado, here’s our cheat sheet…