HSBC to initiate $3 billion share buy-back

Published 06/05/2025, 10:34
© Reuters.

LONDON - HSBC Holdings plc (NYSE:HSBC) has announced the commencement of a share buy-back program, starting from Sunday, May 7, 2025, with a maximum expenditure of $3 billion aimed at reducing the number of its outstanding ordinary shares. The global banking giant, which operates in 58 countries and territories, has entered into agreements with Morgan Stanley & Co (NYSE:MS). International plc to facilitate the repurchase process, which is set to conclude by July 25, 2025, contingent on continued regulatory approval.

The share repurchase activity will be conducted on multiple trading venues, including the London Stock Exchange (LON:LSEG), Aquis Exchange, Cboe Europe Limited, Turquoise, and The Stock Exchange of Hong Kong Limited. The buy-back will adhere to the terms of the authority granted by HSBC’s shareholders during the annual general meeting on May 2, 2025, known as the "2025 Authority," and will comply with relevant regulatory frameworks, including the Financial Conduct Authority’s Listing Rules and applicable US federal securities laws, among others.

According to the parameters set by the 2025 Authority, up to 1,780,490,250 ordinary shares may be repurchased under this program. All shares acquired through this buy-back will be cancelled, reducing the overall share count.

Morgan Stanley will independently execute trading decisions regarding the buy-back from HSBC, ensuring that all transactions are carried out in accordance with pre-set parameters. These transactions will be classified as "on Exchange" transactions on the UK Venues and "market purchases" as per the Companies Act 2006, while the repurchases on the Hong Kong Stock Exchange will be considered "off-market" under the same act but will still comply with the Hong Kong Listing Rules and the Hong Kong Buy-back Code.

HSBC, headquartered in London, reported assets totaling $3,054 billion as of March 31, 2025, underscoring its position as one of the world’s largest banking and financial services organizations. The repurchase plan aligns with the company’s strategy to manage its capital effectively.

This share buy-back initiative is based on a press release issued by HSBC Holdings plc and has been verified for factual content.

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