Plus500 launches new $110m share buyback program

LONDON - Plus500 Ltd (LON:PLUSP)., a global fintech group known for its proprietary trading platforms, has announced the launch of a new share buyback program, with plans to repurchase up to $110 million of its shares. This initiative is set to begin immediately following the completion of the existing buyback program, which commenced on August 27, 2024, after being announced on August 19, 2024.

The new buyback program is part of a broader $200 million return to shareholders, which was disclosed alongside the company's preliminary results for the fiscal year 2024. Plus500's board has expressed confidence in the company's future prospects, citing a strong financial position and a business model that generates significant cash flow, allowing for sustained returns to shareholders.

The preliminary results for FY 2024 showcased Plus500's strategic and financial progress, which has been attributed to the execution of its strategic roadmap. As of December 31, 2024, the group reported having approximately $0.9 billion in cash, which supports its growth initiatives and the provision of shareholder returns, including the $110 million allocated for share buybacks and $90 million for dividends.

The maximum number of shares that Plus500 can repurchase under this program is 2,352,289, a figure determined by the authorization granted at the company's last Annual General Meeting on May 7, 2024, minus the shares already bought back. Plus500 will seek further shareholder approval at its upcoming AGM to continue purchasing its ordinary shares.

Managed by Panmure Liberum Limited, the share buyback program is designed to be irrevocable and non-discretionary, with purchases to be made in the open market based on a variety of factors, including market conditions and share price. The company and its board members will not have the authority to make changes to the program, which is set to run until no later than December 31, 2025.

Shares acquired through the program will be classified as treasury shares, carrying no dividend rights and no voting power at general meetings. Details of the share purchases will be announced by 7.00 am UK time on the business day following the purchase.

This share buyback program aligns with the Market Abuse Regulation (EU) No 596/2014 and the Commission Delegated Regulation (EU) No 2016/1052, as well as the UK Financial Conduct Authority's laws and regulations.

The information in this article is based on a press release statement.

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