Plus500 (LON: PLUS), a forex and CFDs broker listed in London, has started to re-purchase its shares from the open market under its new recently commenced share buyback program. The company bought almost £935,000 ($1.27 million) worth of shares in the first three days, since February 15.
It made an aggressive start of the buyback program, purchasing 27,255 shares in a single day, but the pace was slowed in the next two consecutive days with the re-purchase of 18,563 shares and 17,962 shares on Wednesday and Thursday, respectively, according to the stock exchange filings.
“The Company will hold the repurchased shares in treasury,” Plus500 detailed.
Many Buybacks
Plus500 launched a new share buyback program earlier this week. It has allocated $55 million to repurchase its ordinary stocks. This includes a final buyback of $25.2 million and a special share buyback of $29.8 million that is directly related to the benefits of the change in tax rate from the Israeli statutory rate of 23 percent to 12 percent.
The program will run until the end of December 2022 but can be ended at an earlier date if the company exhausts the allocated amount with the aggressive buyback.
The Israel-headquartered broker has been running massive buyback programs for the last few years and has bought back $268.5 million worth of its shares since it went public in 2013. In 2021 alone, it completed several buybacks totaling $64.9 million.
Meanwhile, the company is performing well on its business front. It reported a 75 percent yearly jump in revenue generated between October 2021 and December 2021. It closed the year with a net profit of $310.6 million, compared to $500.1 million in 2020 and $151.7 million in 2019.
Furthermore, the broker is focused on strengthening and the expansion of its businesses. It recently gained a regulatory license in Estonia, a market where it was already operating by passporting another EU regulator’s approval.
