Plus500 Kicks Off Buyback Program Purchasing a Small Batch of Shares

London-listed Plus500 (LON: PLUS) has purchased a small batch of its ordinary shares from the open market on Tuesday, thus initiating buyback under the recently launched program.

According to an RNS filing with the London Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term (LSE) on Wednesday, the FX and CFDs broker has purchased 220 ordinary shares that were listed on the stock Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term. The company paid an average price of £14.74 for each share, meaning the total value of the transaction was £3,242.

“The Company will hold the repurchased shares in treasury,” Plus500 stated. “Following the purchase of these shares, the remaining number of ordinary shares in issue will be 101,331,310 (excluding treasury shares), and the company will hold 13,557,067 ordinary shares in treasury.”

Another Buyback Program

Plus500 ran multiple buyback programs over the past few years. In the first two quarters of 2021, the company repurchased $25 million worth of its shares from the open market. Now, it has kicked off a new share buyback program, which was announced on Tuesday, allocating a total of $12.5 million.

The Israeli broker has set a closure deadline for the ongoing buyback program at the end of February 2022, but it can be closed earlier if the total quota of the buyback is fulfilled.

Though the volume of the recent transaction is too small, it is an indication that the company has started a repurchase program. Earlier, the broker bought even half a million pounds worth shares a day at the peak of the repurchase efforts.

“The purpose of the programme is to reduce the share capital of the Company, and all ordinary shares repurchased by the Company under the above programme shall be classified as shares held in treasury (dormant shares),” the broker specified earlier.

Meanwhile, Plus500 disclosed that it ended the first six months of 2021 with a revenue of $346.2 million and $165.1 million in net income. Furthermore, the market reacted to the figures and the latest buyback program, as the shares prices of the broker jumped almost 5 percent by the end of Tuesday's session.