CTOS Digital Berhad has cancelled 15.45 million treasury shares, representing 0.67% of its issued share capital, as part of its ongoing share buyback programme aimed at enhancing shareholder returns and optimising capital allocation.
The latest cancellation completes the retirement of all shares repurchased by the company in 2025, following an earlier cancellation of 19.47 million shares last year.
In total, CTOS Digital bought back approximately 34.92 million shares, equivalent to 1.51% of its issued share capital, under a shareholder-approved mandate that allows the company to repurchase up to 10% of its outstanding shares.
The group said the decision to cancel the treasury shares reflects the board’s confidence in the company’s long-term business fundamentals and growth prospects.
CTOS Digital noted that all share repurchases were funded through internally generated funds and borrowings, supported by retained earnings of RM178 million as at Dec 31, 2025, and a relatively low gearing ratio of 14% as at the first quarter of 2026.
The company said the buyback programme has enhanced shareholder value by improving earnings per share and return on equity (ROE), while serving as a tax-efficient method of returning surplus capital to investors.
According to the group, ROE improved to 17.3% after the share buybacks from 16.4% before the exercise.
The company also reaffirmed its commitment to shareholder returns through its dividend policy, which targets a payout ratio of between 60% and 70% of net profit attributable to shareholders. Dividends are distributed quarterly through interim payments.
Based on its share price of RM0.615, CTOS Digital’s trailing dividend yield currently stands at 4.4%.
