Plus500 has expanded its ongoing share buyback program, allocating an additional $12.6 million to acquire ordinary shares from the open market.
This is a continuation of the company’s existing stock repurchase program under which it already bought $12.6 million worth of shares from mid-August until October 27. The ongoing program will run until 28 February 2022 but can be closed earlier if the quota is fulfilled.
“The purpose of the programme is to emphasize the Board's confidence in the prospects of Plus500 and reflects the robust financial position of the Group, as highlighted in the Group's Q3 2021 trading update earlier this week,” the company detailed.
The company classified the shares bought under such programs as shares held in treasury, taking them out of circulation.
The London-listed Forex and CFDs broker assured that all the share buyback transactions will happen on the open market. In addition, it has appointed Liberum Capital Limited to manage the buyback program.
Buyback after Buyback
Plus500 has been running share buyback programs for a while now. Earlier this year, the company bought back $25 million worth of its shares, whereas, in 2020, it repurchased $88.8 million worth of its ordinary shares from the open market.
However, the announcement of the latest buyback program failed to create investor enthusiasm as the price of Plus500 shares dropped by 1.21 percent, as of press time, at the opening of markets on Friday.
The broker allocated additional funds in the program after it released Q3 revenue marginally went down from the previous year’s figures. However, the financials of the company remain significantly stronger than pre-pandemic levels.
Meanwhile, the broker raised its full-year expectations of revenue for the ongoing year from the levels of the current consensus analyst forecast.
