Plus500 Starts New Share Buyback Program with £496k Repurchase
UK-listed Plus500, an FX and CFDs broker, started to repurchase its ordinary shares under the new buyback scheme, which was announced on Wednesday.
The broker bought 34,054 ordinary shares under the new scheme on February 18, according to its latest London Stock Exchange filing, only a day after the new scheme’s announcement. It paid an average price of 1,457.45 pence for each stock.
It detailed that after the purchase, the remaining number of ordinary shares on issue will be 102,483,172, and it will hold 12,405,205 ordinary shares in the treasury.
“The Company purchased the following number of its ordinary shares of ILS 0.01 each through Credit Suisse Securities (Europe) Limited,” the broker detailed.
Under the new share buyback program, Plus500 would buy $25 million worth of its ordinary shares, which will run till August 11, 2021, or will provide an update at the end of its half-yearly interim results, if it has to close the program earlier.
Actively Repurchasing Shares
The London-based broker is actively repurchasing its shares for a while now. The new program commenced after it bought back $88.8 million of its own shares in the financial year 2020. Though, it ran two previous share buyback programs.
The new buyback program was announced after the brokerage reported a massive surge in 2020 profits with the increase of client activity. As Finance Magnates reported earlier, it ended the year with a net profit of $500.1 million, which is almost 230 percent higher than the previous year’s profits.
Furthermore, the impact of the recently released results can be seen on the markets as the share prices are showing an uptrend since.
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