German Startups Group (GSG) announced it has increased the number of shares in its buyback offer to c. 900k yesterday which represents 8.2% of the current free float from 300k shares (2.7%). The offer price stays at €1.50 per share, which implies a 2.7% discount to the last closing price (the share price increased 6.2% since the initial buyback announcement).
In case of oversubscription, the declarations of acceptance will be considered proportionally, i.e. at the ratio of all shares offered in the buyback to total number of tendered shares.
It should be appreciated that GSG undertakes steps to limit its NAV discount, which currently stands at 36% to end-2018 NAV. During 2018, the company already bought back 230k of its shares from the market. However, its also true that the enlarged buyback may potentially have some adverse impact on the stock’s liquidity.