Plus500 Ltd. (LSE: PLUS) has announced the launch of a new $100 million share repurchase program, following the near-completion of its existing $60 million buyback initiated in August 2023. As a result of this news, PLUS shares saw a more than 3% increase in Thursday’s opening on the London Stock Exchange.
The Board interprets this new initiative as a reinforcement of their “ongoing confidence” in Plus500’s future growth opportunities and its “ability to deliver robust future shareholder returns.” This confidence is rooted in the significant operational and financial progress the company has achieved in recent years as it advances along its strategic roadmap.
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Having concluded the fiscal year 2023 with a group revenue of $726.2 million, the company has decided to return $175 million to its shareholders. The maximum number of shares to be repurchased under this program is 4.8 million, falling within the limits set by shareholders at July’s general meeting. Purchases will be executed through open market transactions, managed daily by Liberum Capital. Liberum will oversee the non-discretionary buyback by pre-established guidelines, operating independently from the Board’s influence.
“Plus500’s prudent capital allocation approach and cash-generating business model enable it to invest in organic growth and strategic acquisitions, maintain a transparent dividend policy, and provide value to shareholders through share repurchases when appropriate,” stated Plus500 in its official announcement.
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