UK-listed broker Plus500 (LON:PLUS) has continued the purchase of its ordinary shares under the recent program of repurchasing $67.3 million of its own shares.
Filings with the London Stock Exchange (LSE) show that the broker bought 34,000, and 33,000, of its ordinary shares of ILS 0.01 each through Credit Suisse Securities (Europe) Limited on Friday, and Monday, respectively.
On Friday, the broker paid a volume weighted average price of £14.42, while the average increased to £14.87 in the next trading session. This means the company paid £490,280, and £490,710, respectively in purchasing the shares in the last two trading sessions.
“The Company will hold the repurchased shares in treasury,” Plus500 noted in the recent filing. “Following the purchase of these shares, the remaining number of ordinary shares in issue will be 105,844,043 (excluding treasury shares), and the company will hold 9,044,334 ordinary shares in treasury.”
Buyback When the Prices Are Low
Plus500 announced the latest share buyback program earlier this month while reporting its half-yearly finances, showing a 281 percent uptick in its revenue. Since then, the broker has bought its shares in six trading sessions, including the recent two. The ongoing buyback program will end on February 28, 2021.
It is also possible for the broker to end the program earlier on the date of the announcement of its preliminary results for the year ended on December 31, 2020.
As the COVID-19 induced market Volatility benefited the brokers, Plus500’s business also boomed. The platform’s shares jumped over 70 percent since the beginning of this year and are currently trading at £14.82 apiece, as of press time.
The broker started the purchases slowly with only 4,119 of its ordinary shares on August 11 and another 5,313 shares on August 18. However, as the company share prices gained upward momentum, the size of the batches also increased significantly.
As Finance Magnates reported earlier, the broker is continuously extending its share buyback program. The broker also ran two share buyback programs of $30 million, and $60 million, respectively, before the ongoing program.
