Plus500 Accelerates Share Buyback Momentum

Plus500 Accelerates Share Buyback Momentum

Time Stamp: August 25, 2023 6:17 AM
Source Node: 2843375

The global multi-asset fintech company Plus500, renowned
for its proprietary technology-based trading platforms, has executed its share
buyback program, which was initiated on August 16, 2023. According to a
statement issued today (Friday), the company purchased a total of
31,404 shares on August 24.

Plus500 purchased the
shares at prices ranging between GBp 1,440 and GBp 1,467. The volume-weighted
average price of the purchase was GBp 1,448. Following the share repurchase
program, which was announced on August 14, Plus500 holds 33,465,551 ordinary
shares in its treasury. As a result, the company retains a balance of 81,422,826 issued ordinary shares.

For the existing
shareholders, Plus500’s share buyback program implies a shift in voting rights.
According to the company’s statement, the total number of voting rights pegged
at 81,422,826, serves as an important denominator for shareholders as they
navigate their disclosure obligations in line with the FCA’s Disclosure
Guidance and Transparency Rules.

More than a week ago, Finance
Magnates reported that
the publicly-listed London broker had embarked on yet another round
of share buybacks worth
USD $60 million. This step followed closely on the heels of a USD $70 million
repurchase plan earlier this year.

In its communication,
Plus500 said it was set to purchase a maximum of 8,032,980 shares in accordance
with permission granted during a general meeting held on July 24, 2023. The
execution of the buyback was entrusted to Liberum Capital Limited. This buyback
program reportedly aims to strengthen the financial position of Plus500.

Plus500’s Operational
Performance

Despite reaching record
levels at the beginning of the year, Plus500’s share price faced volatility,
experiencing a decline of nearly 30% between February and August. Currently
priced slightly above 1400 pence, the shares have
rebounded from a low point in
June. The decline of the share price correlated with the company’s revenue
performance, a trend attributed to reduced trader activity in early 2023.

Despite posting a 43%
dip in core profit during the first half of the year, Plus500 announced in
August that it was set to return an estimated USD $120 million to shareholders
through dividends and share buybacks. Besides that, Plus500 is eying
international expansion, leveraging acquisitions and market diversifications to
navigate shifting market dynamics.

In light of its plans to
expand its reach, the retail broker said in May that it was exploring the
possibility of listing
its shares on a US stock exchange as
a strategic move to strengthen its valuation and expand its presence beyond the
London Stock Exchange. The company has been strategically expanding its
operations in the US with initiatives such as the acquisition of Cunningham
Commodities and Cunningham Trading Systems.

The global multi-asset fintech company Plus500, renowned
for its proprietary technology-based trading platforms, has executed its share
buyback program, which was initiated on August 16, 2023. According to a
statement issued today (Friday), the company purchased a total of
31,404 shares on August 24.

Plus500 purchased the
shares at prices ranging between GBp 1,440 and GBp 1,467. The volume-weighted
average price of the purchase was GBp 1,448. Following the share repurchase
program, which was announced on August 14, Plus500 holds 33,465,551 ordinary
shares in its treasury. As a result, the company retains a balance of 81,422,826 issued ordinary shares.

For the existing
shareholders, Plus500’s share buyback program implies a shift in voting rights.
According to the company’s statement, the total number of voting rights pegged
at 81,422,826, serves as an important denominator for shareholders as they
navigate their disclosure obligations in line with the FCA’s Disclosure
Guidance and Transparency Rules.

More than a week ago, Finance
Magnates reported that
the publicly-listed London broker had embarked on yet another round
of share buybacks worth
USD $60 million. This step followed closely on the heels of a USD $70 million
repurchase plan earlier this year.

In its communication,
Plus500 said it was set to purchase a maximum of 8,032,980 shares in accordance
with permission granted during a general meeting held on July 24, 2023. The
execution of the buyback was entrusted to Liberum Capital Limited. This buyback
program reportedly aims to strengthen the financial position of Plus500.

Plus500’s Operational
Performance

Despite reaching record
levels at the beginning of the year, Plus500’s share price faced volatility,
experiencing a decline of nearly 30% between February and August. Currently
priced slightly above 1400 pence, the shares have
rebounded from a low point in
June. The decline of the share price correlated with the company’s revenue
performance, a trend attributed to reduced trader activity in early 2023.

Despite posting a 43%
dip in core profit during the first half of the year, Plus500 announced in
August that it was set to return an estimated USD $120 million to shareholders
through dividends and share buybacks. Besides that, Plus500 is eying
international expansion, leveraging acquisitions and market diversifications to
navigate shifting market dynamics.

In light of its plans to
expand its reach, the retail broker said in May that it was exploring the
possibility of listing
its shares on a US stock exchange as
a strategic move to strengthen its valuation and expand its presence beyond the
London Stock Exchange. The company has been strategically expanding its
operations in the US with initiatives such as the acquisition of Cunningham
Commodities and Cunningham Trading Systems.

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