Rubicon today announced plans to buy back up to 5 per cent of its stock to improve liquidity.
The forestry and biotech investor's share price has languished since corporate raider Guinness Peat Group exited its 20 per cent stake in September.
GPG sold its stake, via an institutional bookbuild, at$1.03 per share - an 8 per cent discount to Rubicon's September 16 closing price of $1.12.
Since then the shares have plunged, touching a year low of 85c on November 2, and erasing the stellar 23 per cent annual gain the stock had recorded when its annual report went to print in August.
"We believe the current share price not to be reflective of the true value of your company," Rubicon chairman Stephen Kasnet told shareholders at the company's annual meeting in Wellington.
"One of the issues the share is facing is a short-term lack of liquidity - very small traded volumes can move the price quite considerably in the course of a day."
The company could either wait for new buyers to come into the market, or step in itself to "fill the void". This made the best economic sense at the 87c-88c level, Mr Kasnet said.
Following GPG's exit, the Rubicon share register is dominated by large offshore funds. United States-based investors Perry Corp, Third Avenue Management, Castlerigg Master Investments, and Cadmus Capital own 20 per cent, 17 per cent, 12 per cent and six per cent respectively.
New Zealand fund manager AMP owns 10 per cent and Auckland-based Walker Capital Management owns 6 per cent.
Shares in Rubicon traded up a cent at 88c on the buy back news. No further details on the timing of the buy back were released.
Rubicon owns 50.01 per cent of wood products firm Tenon, and has interests in Arborgen, Horizon 2 and Argentina's Forestadora Tapebicua.
