Per the report, Xiaomi will buy back a total of HK$12 billion ($1.53 billion) of its stock, which is the biggest repurchase in the company’s history.
Xiaomi’s shares were up almost 5% following the announcement to HK$8.92 ($1.14).
The company went public in July 2018, debuting below the estimated IPO price with its shares trading at HK$17. Within a year Xiaomi has lost almost a third of its market value. It has struggled with the overall decrease in the smartphone market and increased competition firm such as Huawei.
Research company Canalys, cited by Reuters, found that Xiaomi’s growth slowed in the April-June quarter. The company’s stock was visibly affected by the ongoing protests which started in Hong Kong in June. Meanwhile, Huawei’s competitor, Chinese tech giant Huawei, managed to grow 31% during the same period.
Earlier in August, Xiaomi postponed its decision to launch a mainland share offering, choosing to focus on its business development.