STG continues buyback program; G City executed significant move in late September

STG International executed another share buyback, days after both it and real estate company G City carried out similar moves, the latter totaling over ₪1.1 million.

STG International is continuing its share buyback program, purchasing additional shares for approximately ₪4.5 thousand on October 5, bringing the program's execution rate to 10.7%. This follows a late September purchase of shares for about ₪17.5 thousand, while concurrently real estate company G City executed a large share and bond buyback exceeding ₪1.1 million.

STG International is continuing to implement its share buyback program, reporting an additional purchase of company shares in early October. This move comes about a week after a trading day in which both it and real estate company G City executed share buybacks, with G City standing out with a combined share and bond purchase totaling over ₪1.1 million.

STG: Small and consistent purchases

According to a filing on October 6, STG purchased 126 of its own shares on the preceding trading day (October 5) for approximately ₪4,488, at an average price of ₪35.622 per share (Filing: 2026-01-090528). This purchase joins a previous acquisition made on September 29, when the company bought 516 shares for about ₪17.5 thousand (Filing: 2026-01-089257).

Both purchases are part of a program announced in late August 2026. Following the latest purchase, the program's cumulative execution rate rose to 10.72%, compared to 7.34% after the previous purchase. STG now holds 110,997 dormant shares, representing 2.27% of the company's issued share capital.

G City: Significant capital market move

By comparison, in late September, income-producing real estate company G City executed a buyback move of significantly larger scope. On September 29, G City purchased 58,347 of its own ordinary shares for ₪665,155, reflecting an average price of ₪11.4 per share (Filing: 2026-01-089247). Following this purchase, the cumulative execution rate of the company's share buyback program stood at 59.3%.

Concurrently, G City also operated in the debt market, purchasing 500,000 par value units of Series 14 bonds for ₪510,000 (Filing: 2026-01-089250). While the purchased shares became dormant, the bonds were retired from circulation, a move that effectively reduces the company's liabilities.

Management votes of confidence

Share buybacks of securities—both equities and bonds—are a common financial tool for capital allocation. A share buyback can signal management's confidence in the company's value, as well as increase earnings per share by reducing the number of tradable shares. Bond repurchases, on the other hand, provide a way to reduce financial liabilities and save on future financing costs. While both companies are operating within approved programs, the disparity in purchase scales highlights the differences in strategy and operational scope between trade company STG and real estate giant G City.