ZTO Express (Cayman) Inc. (NYSE: ZTO) saw its shares make a handy gain to kick off the week after the company announced a new share repurchase program. ZTO plans to repurchase up to $300 million of its class A ordinary shares in the form of American depositary shares over the next 12 months. The company will finance these repurchases through its existing cash balance.

Keep in mind that this was one of the largest initial public offerings back in 2016, raising about $1.62 billion in the IPO. The company currently has a market cap of approximately $10.6 billion.

Excluding Monday’s move, ZTO has actually outperformed the broad markets, with the stock up 16% year to date. Although the stock has performed well in 2017, its performance since the IPO has been very underwhelming. The stock was originally priced at $19.50 when it came public in October.

Mr. Meisong Lai, founder and chief executive of ZTO, commented:

The Company’s share repurchase plan demonstrates our confidence in the Company’s strategy, operating fundamentals and the future business prospects of China’s express delivery industry. We are committed to creating more value for our shareholders.

ZTO provides express delivery service through its nationwide network, as well as other value-added logistics services. The company has developed one of the most extensive and reliable delivery networks in China, covering over 96% of China’s cities and counties.

Shares of ZTO were last seen up 4.7% at $14.66 on Monday, with a consensus analyst price target of $17.39 and a 52-week trading range of $11.14 to $18.45.

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