Plus500 Ltd has announced plans to buyback US$67.3 million of its shares on the open market. The share buyback program is scheduled to run from 11 August 2020 until February 28, 2021.
11 August 2020 | AtoZ Markets – The financial markets may be in turmoil by the coronavirus crisis, but it is not stopping the Plus500. The broker has been busy for the last few weeks. Yesterday, Plus500 signed a two-year contract to be the main front of shirt sponsor for football club Legia Warsaw. Moreover, the broker recorded a significant profit increase in first-half during the financial markets crisis caused by coronavirus.
Plus500 Proposes New Share Buyback Programme
Plus500 will repurchase $67.3 million of its ordinary shares on 11 August 2020, according to the London Stock Exchange (LSE) news service. It is a CFDs broker listed on the London Stock Exchange. Its shares are a constituent of the FTSE 250 Index.
The buyback program will run from 11 August 2020 until 28 February 2021, or until the company announces its 2020 preliminary results, brokers said.
Credit Suisse Securities (Europe) Limited (CS) will repurchase of the shares on behalf of Plus500, within specific parameters. Plus500 and its directors do not have the power to invoke any changes of the buyback program. The program is at CS’s sole discretion. Plus500 said:
“The current shareholder authorisation extends until the company’s 2020 annual general meeting or, if earlier, at the close of business on 18 September 2020, unless such authority renew before this time. Plus500’s Board is seeking shareholder authorisation at the company’s 2020 annual general meeting on 16 September 2020 to renew the company’s share buyback authorisation for an additional year.”
However, the broker had record levels of client trading activity in the second quarter of 2020. The broker added more than 100,000 new customers so far in the second quarter. It significantly expanded its net customer deposit balance to about $500 million.
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