IG Group Expands Share Buyback Program with £50 Million Third Tranche

by Damian Chmiel
  • IG Group initiates the £50m third tranche of the share buyback program, extending to £200m.
  • The tranche runs from 3 April to 31 August, aiming to reduce share capital.
IG Group
IG Group

IG Group Holdings plc (LON:IGG) has announced the initiation of the third tranche of its share buyback program, following the £150 million program announced on July 2022 and the £50 million extension on January 2026.

IG Group Launches Third Tranche of Share Buyback Program

The company has entered into non-discretionary instructions with Morgan Stanley & Co. International Plc to conduct the third tranche of up to £50 million, following certain pre-set parameters. Morgan Stanley will make trading decisions in relation to the program independently of IG Group.

The primary goal of the share buyback program is to reduce the company's share capital. The third tranche, with a maximum aggregate market value of £50 million, will commence on 3 April 2023 and is set to conclude on or before 31 August 2023. This tranche will expand the program's size to a total of up to £200 million.

The third tranche will be conducted within the constraints of the authority granted to the IG Group's Board at its annual general meeting on 21 September 2022. Under this authority, the maximum number of shares available for purchase during the third tranche is 23,767,538.

As mentioned at the beginning of this article, IG Group launched the share buyback program, initially worth £150 million, in July 2022. The company decided to extend its existing share buyback program with the allocation of an additional £50 million in January 2023.

The news did not have a more pronounced effect on IG Group's stock price on the London Stock Exchange. IGG is up 0.5% to £702 on Monday, while the investment firm's shares have lost more than 10% since the beginning of the year.

CMC Markets and Plus500 with Own Share Buybacks

The program aims to reduce Plus500 share capital, a business strategy followed by its competitors like CMC Markets and Plus500.

CMC Markets (LON:CMCX), a major London-listed brokerage firm, began to repurchase its shares under its buyback program a year ago. The company purchased 119,000 ordinary shares in March 2022, thus kicking off the program.

This year, Plus500 (LON:PLUS), another London-listed trading company, kicked off another share repurchase program allocating $70 million. For several years, Plus500 has been conducting share repurchase initiatives. In 2020, the company bought back $88.8 million of its ordinary shares from the open market. In the subsequent year, it implemented a $25 million program and later supplemented it with an extra $12.5 million.

IGG (red), CMCX (blue), PLUS (orange) and XTB (yellow) share price since 2022. Tradingview.com
IGG (red), CMCX (blue), PLUS (orange) and XTB (yellow) share price since 2022. Tradingview.com

In March, XTB, a broker listed on the Warsaw Stock Exchange (WSE:XTB), announced plans to conduct its own share buyback. The company announced its decision to pay its shareholders 50% of its estimated net profit of PLN 761.6 million ($171.6 million) in 2022 as dividends and set aside 25% of the profit to buy back shares of the company.

GMO heralds new investment and Komainu enhances custody. Check today's news nuggets!

IG Group Holdings plc (LON:IGG) has announced the initiation of the third tranche of its share buyback program, following the £150 million program announced on July 2022 and the £50 million extension on January 2026.

IG Group Launches Third Tranche of Share Buyback Program

The company has entered into non-discretionary instructions with Morgan Stanley & Co. International Plc to conduct the third tranche of up to £50 million, following certain pre-set parameters. Morgan Stanley will make trading decisions in relation to the program independently of IG Group.

The primary goal of the share buyback program is to reduce the company's share capital. The third tranche, with a maximum aggregate market value of £50 million, will commence on 3 April 2023 and is set to conclude on or before 31 August 2023. This tranche will expand the program's size to a total of up to £200 million.

The third tranche will be conducted within the constraints of the authority granted to the IG Group's Board at its annual general meeting on 21 September 2022. Under this authority, the maximum number of shares available for purchase during the third tranche is 23,767,538.

As mentioned at the beginning of this article, IG Group launched the share buyback program, initially worth £150 million, in July 2022. The company decided to extend its existing share buyback program with the allocation of an additional £50 million in January 2023.

The news did not have a more pronounced effect on IG Group's stock price on the London Stock Exchange. IGG is up 0.5% to £702 on Monday, while the investment firm's shares have lost more than 10% since the beginning of the year.

CMC Markets and Plus500 with Own Share Buybacks

The program aims to reduce Plus500 share capital, a business strategy followed by its competitors like CMC Markets and Plus500.

CMC Markets (LON:CMCX), a major London-listed brokerage firm, began to repurchase its shares under its buyback program a year ago. The company purchased 119,000 ordinary shares in March 2022, thus kicking off the program.

This year, Plus500 (LON:PLUS), another London-listed trading company, kicked off another share repurchase program allocating $70 million. For several years, Plus500 has been conducting share repurchase initiatives. In 2020, the company bought back $88.8 million of its ordinary shares from the open market. In the subsequent year, it implemented a $25 million program and later supplemented it with an extra $12.5 million.

IGG (red), CMCX (blue), PLUS (orange) and XTB (yellow) share price since 2022. Tradingview.com
IGG (red), CMCX (blue), PLUS (orange) and XTB (yellow) share price since 2022. Tradingview.com

In March, XTB, a broker listed on the Warsaw Stock Exchange (WSE:XTB), announced plans to conduct its own share buyback. The company announced its decision to pay its shareholders 50% of its estimated net profit of PLN 761.6 million ($171.6 million) in 2022 as dividends and set aside 25% of the profit to buy back shares of the company.

GMO heralds new investment and Komainu enhances custody. Check today's news nuggets!

About the Author: Damian Chmiel
Damian Chmiel
  • 1378 Articles
  • 28 Followers
About the Author: Damian Chmiel
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
  • 1378 Articles
  • 28 Followers

More from the Author

Retail FX

!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|} !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}