Breaking: Plus500 Announces $10m Share Buyback Program
- Plus500 is buying its own shares just before crucial regulatory action from the FCA .
Retail foreign exchange and CFDs trading provider Plus500 has announced a share buyback program worth $10 million. The company will finance the purchases of its own stock via its net cash balances that as of the 31st of May stood at $191 million.
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The proposal has been amongst 11 resolutions which the board of Plus500 approved at its annual shareholders meeting. The board also reaffirms its base 60 percent pay-out ratio dividend policy, expressing confidence in the firm’s business model and its ability to convert revenues into cash-flow.
The company will continue to be able to pay special dividends or expand the buyback program whenever it generates surplus cash.
Liberum Capital Appointed as Intermediary
The purchases of Plus500’s own stock will be conducted by the company depending on market conditions, contingent on share price, trading volumes and other variables. Liberum Capital Limited has been appointed to run the buyback program.
Plus500’s buyback program will run over three months, ending on the 31st of August 2017. The effort is limited to a maximum of 11,488,837 shares which is 10 percent of the company’s issued share capital.
Plus500 will pay out $75 million in dividends in July. Those are part of the firm’s current cash coffers of $191 million as of May 31st.
Commenting on the announcement, the CEO of Plus500, Asaf Elimelech, stated: “We are pleased to announce the start of a share buyback program, which will be funded from our significant cash resources. Together with the substantial dividend Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl due to be paid in July, our cash generative business model is enabling us to provide good shareholder returns despite current regulatory uncertainties.”
Just before the open of trading on the London Stock Exchange, shares of Plus500 are quoted at £5.19. At present exchange rates the firm has committed about £7.8 million for the effort, which in theory is enough to purchase 1.5 million shares. The current average daily volume of Plus500 shares traded via the LSE is 508,646.
Plus500 Expects FCA Regulatory Measures Impact in H2 2017
In its announcement the company also provided a short trading update, outlining that the current trends in terms of client activity are positive. Plus500 expects stronger revenue and stable margins when compared to the first quarter of 2017. The news comes despite a decline in Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders .
The retail broker also highlights that while no material effects are expected from regulatory changes in Europe, the company is expecting the results from the FCA's consultation to possibly affect the second half of 2017.
Retail foreign exchange and CFDs trading provider Plus500 has announced a share buyback program worth $10 million. The company will finance the purchases of its own stock via its net cash balances that as of the 31st of May stood at $191 million.
[gptAdvertisement]
The proposal has been amongst 11 resolutions which the board of Plus500 approved at its annual shareholders meeting. The board also reaffirms its base 60 percent pay-out ratio dividend policy, expressing confidence in the firm’s business model and its ability to convert revenues into cash-flow.
The company will continue to be able to pay special dividends or expand the buyback program whenever it generates surplus cash.
Liberum Capital Appointed as Intermediary
The purchases of Plus500’s own stock will be conducted by the company depending on market conditions, contingent on share price, trading volumes and other variables. Liberum Capital Limited has been appointed to run the buyback program.
Plus500’s buyback program will run over three months, ending on the 31st of August 2017. The effort is limited to a maximum of 11,488,837 shares which is 10 percent of the company’s issued share capital.
Plus500 will pay out $75 million in dividends in July. Those are part of the firm’s current cash coffers of $191 million as of May 31st.
Commenting on the announcement, the CEO of Plus500, Asaf Elimelech, stated: “We are pleased to announce the start of a share buyback program, which will be funded from our significant cash resources. Together with the substantial dividend Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl due to be paid in July, our cash generative business model is enabling us to provide good shareholder returns despite current regulatory uncertainties.”
Just before the open of trading on the London Stock Exchange, shares of Plus500 are quoted at £5.19. At present exchange rates the firm has committed about £7.8 million for the effort, which in theory is enough to purchase 1.5 million shares. The current average daily volume of Plus500 shares traded via the LSE is 508,646.
Plus500 Expects FCA Regulatory Measures Impact in H2 2017
In its announcement the company also provided a short trading update, outlining that the current trends in terms of client activity are positive. Plus500 expects stronger revenue and stable margins when compared to the first quarter of 2017. The news comes despite a decline in Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders .
The retail broker also highlights that while no material effects are expected from regulatory changes in Europe, the company is expecting the results from the FCA's consultation to possibly affect the second half of 2017.