(Reuters) – British cybersecurity firm Darktrace Plc said on Wednesday it was commencing a buyback plan of up to 35 million shares worth 75 million pounds ($92.36 million).
The buyback, which according to Refinitiv data represents nearly 13% of Darktrace’s shares in free float, would be completed by Oct.
31, the group said.
London-listed Darktrace’s shares were up 1.2% as of 0850 GMT, a muted reaction following a 10% slump on Tuesday after a New York-based short-selling fund questioned the group’s financial statements in a 70-page report.
The market is still digesting the scathing report and the stock is down about 16% so far this week.
Darktrace had responded that it had full confidence in its accounting practices, and Berenberg analysts said in a note on Wednesday that many of the report’s conclusions were “based on issues taken out of context and at minimum hard to validate”.
Earlier this month, Darktrace had cut its annual revenue forecast after prospective customers turned more reluctant to run product trials due to the worsening economic environment.
($1 = 0.8120 pounds)
(Reporting by Muhammed Husain in Bengaluru; Editing by Rashmi Aich)
