Specialty chemicals maker Innospec Inc. said Wednesday that its board approved the increase of its current stock buyback program to $40 million from $5 million.
Innospec officials said the company's current share price significantly undervalues Innospec and its potential, making the buyback a practical use of its capital.
The shares will be repurchased on the open market, the company said.
In afternoon trading, Innospec shares rose 99 cents, or 4 percent, to $25.98. The stock has traded at $12.70 to $38.24 over the past 52 weeks.