Plus500 (LON: PLUS) initiated its share repurchase program worth $70 million on Tuesday, which was previously announced this month. The program comprises two parts – a final share buyback program of $42.4 million and a special share buyback program of $27.6 million.
This program is a part of the company’s $100 million distribution plan for its investors, with $30 million being distributed as dividends due to the significant increase in profits in 2022. The company has appointed Jefferies International Limited to manage the share repurchase program, which allows them to buy back a maximum of 9,959,828 shares from the open market.
Share Buybacks Repurchase
Plus500 is an Israeli company listed in London that provides counterparty trading services to retail customers in margin forex and contract for differences (CFDs) instruments. The company is renowned for its buyback programs that have been ongoing for several years. The most recent buyback program began after the completion of a $60.2 million program.
In 2022, Plus500 began repurchasing its shares under two programs, with one valued at $55 million and the other at $50 million. The company repurchased $88.8 million worth of its ordinary shares from the open market in 2020 and later conducted another $25 million program, topping it up with an additional $12.5 million.
The continued buyback program, combined with Plus500’s robust cash flow, has contributed to an increase in the company’s share price, which rose by 28 percent in the last 12 months, outperforming other FX/CFDs brokers.
“The purpose of this Share Buyback Programme is to further highlight the Board’s continued confidence in the prospects of Plus500 and reflects its strong financial position. This confidence is supported by the significant operational and financial momentum achieved by Plus500 over recent years, as the Group continues to make further progress on its strategic roadmap,” the broker noted.
Plus500 recorded revenue of $832 million in the 2022 financial year, representing a year-over-year increase of over 15.7 percent, along with an increased EBITDA of approximately $454 million. The company is now focusing on expanding geographically, having recently obtained a license from the Dubai Financial Services Authority (DFSA) to bolster its presence in the Middle East. Additionally, it aims to capture the US market after acquiring Cunningham in 2021.
Plus500’s US aspirations were further highlighted when it signed a four-year sponsorship agreement with the Chicago Bulls, a US-based professional basketball team, after ending a seven-year deal with the Spanish football club Atletico Madrid.
