Companies buy back their stock frequently but generally do so in a lower-key manner, entering the market as an occasional or frequent buyer operating through the normal processes of the equity markets. Companies often declare their intention to buy back stock over a certain period, but the specifics of those purchases are far less transparent and open-ended than in a Dutch auction.
By contrast, Pam announced the Dutch auction in a press release and in a Securities and Exchange Commission filing Wednesday.
If one of the goals of the Dutch auction was to boost the company's stock price, it was working Thursday. At approximately 1:30 p.m., Pam stock was up $2.97, a gain of 20.43%, to $17.51.
Pam's stock set its 52-week high on June 7, 2023, when it reached $28.77. Its 52-week low was $13.51 on Monday, a decline of 53% since the 52-week high.
The stock decline has been more dramatic since its high-water mark of near $40 in November 2022. The percentage decline from the peak to the recent 52-week low is roughly two-thirds.
Pam has not paid a dividend since a special one-time payout in 2012.
Pam executives are prohibited from discussing the offer while it is in what is known as "quiet time" before an action governed by SEC rules.