Key Insights
- Plus500 launches new $100 million share repurchase program after completing existing $60 million buyback
- Program aims to underscore board confidence in company’s growth outlook and ability to deliver returns
- Share buybacks authorized up to 4.8 million Plus500 shares under parameters set at July 2023 EGM
LONDON (MarketsXplora) – Plus500 Ltd (PLUS.L), an online trading platform, said on Thursday it will launch a new share buyback program worth up to $100 million, highlighting the company’s confidence in its future growth prospects.
The company said the new program will begin immediately after completing its existing $60 million buyback scheme announced last August. The board authorized the repurchase of up to 4.8 million Plus500 shares, within the parameters of the authority granted by shareholders at July’s Extraordinary General Meeting (EGM).
Plus500 said share purchases under the 2023-2024 program will be conducted in the open market from time to time, depending on factors like share price, trading volumes and market conditions. Investment bank Liberum Capital will manage the irrevocable, non-discretionary buyback plan on Plus500’s behalf.
The latest buyback scheme reflects Plus500’s robust financial position and capacity to deliver strong returns, the company said in a statement. It is scheduled to run until December 31, 2024, with share repurchases allowed during any closed periods.
Plus500, which offers leveraged trading on stocks, commodities, indices and currencies, has seen income growth in recent years. But its share price has dropped almost 60% over the last 12 months amid lower trading volumes.
In the year to end-June 2022, Plus500’s earnings per share fell 18% to $1.24 as revenue declined 15% to $718 million. The company has been focusing on diversifying its product range beyond core leveraged products.