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

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.

Navigating the Share Buyback

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 will be 81,422,826. This 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 and experienced a decline of nearly 30% between February and August. Currently priced slightly above 1,400 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 dip of 43% 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.