SM Investments Corp. (SMIC), the flagship of the Sy family, has kicked off its massive ₱60 billion share buy-back program by scooping out 60,000 shares worth ₱48.55 million from the open market from March 19 to March 20, 2025.

In a disclosure to the Philippine Stock Exchange, the firm said it bought the shares from a low of ₱805.50 apiece to as high as ₱812.50 a share, bringing the total number of its treasury shares to 4.15 million from 4.09 million, and bringing down its outstanding capital to 1.229 billion shares from 1.22906 billion shares.

SM’s board of directors approved last Feb. 28, 2025, the creation and implementation of a share buyback program involving up to ₱60 billion worth of the corporation’s common shares, and authorized management to determine the terms and conditions of the share buyback in accordance with the best interests of the corporation.

The company's buyback program is SM’s first and is touted as the largest in Philippine corporate history. It reflects SM’s positive outlook on the country’s economic future.

“This major undertaking is in recognition of the significant under-valuation of SMIC’s share price. In the current market we trade well below our historical valuation multiples, which do not reflect the performance and future growth potential of the group,” said SMIC President and CEO Frederic C. DyBuncio.

Thus, SM said its decision to repurchase shares worth $1 billion signals the company’s belief in its value appreciation and the continued growth of the Philippine economy.

“We believe that growth in the Philippines will continue to be consumption-driven,” said SM Executive Vice President for Treasury, Finance, and Planning Erwin G. Pato.

He noted that, “70 percent of our gross domestic product (GDP) is consumption-driven, and our business is right within that footprint. Our offerings in retail, integrated property development, and financial services will continue to be key players in this consumption-driven growth.”

The buyback program intends to create value for the company’s shareholders by reducing the number of shares outstanding, thereby improving future earnings per share.

“We always aim to create and return value to our shareholders. This program intends to do so by authorizing the buyback of up to approximately six percent of our shares outstanding,” DyBuncio explained.

SMIC expects 2025 to be another banner year, following its record performance in 2023 and 2024, on the back of the strength of both its core businesses and portfolio investments.

“We continue to be cautiously optimistic for 2025. We believe the economy will continue to grow at a very good pace, and the election this year will hopefully help in terms of pick up in terms of consumer spending, and that will certainly help our overall business,” said DyBuncio.

He noted that, “All of our businesses, whether it be the property, the banking, the retail, will continue to grow on its own, and even our portfolio investment will continue to grow.”