Plus500 allots additional $60.0 million to share repurchase

In a regulatory filing, the London-listed company said it will kick off the new scheme immediately after the completion of the ongoing $70.0 million buyback program. The broker added that the move reflects the opportunities available to drive future ‎growth, as well as its high cash generation. ‎

“The purpose of this Share Buyback Programme is to further highlight the Board’s continued confidence in the future prospects of Plus500, reflecting the Group’s robust financial position and ability to deliver strong future shareholder returns. 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,” it added.

Plus500’ most recent Extraordinary General Meeting (EGM) has granted the green light for the board to continue the existing buyback program, which was initially unveiled on 14 February 2023.

The resolution, voted on via a poll, passed by the requisite majority. Out of the total votes cast (excluding votes withheld), a majority of 80.66% were in favor of returning more money to the shareholders, while 19.34% voted against it. In terms of issued share capital, the resolution garnered a 57.26% of support.

With the new approval in place, the company’s board has the authority to consider future purchases of ordinary shares prior to the scheduled 2024 Annual General Meeting (AGM).

Plus500 kicked off a further share buyback program of $70 million in February, which follows a previous $60 million share buyback program announced in November.

The Israel-based, UK-listed online trading platform broker released a statement that it will be buying back a maximum of 9,959,828 ordinary shares, or up to 11 percent of the company’s 92 million outstanding shares.

The fintech group outlined that the transaction includes a $42.4 million final buyback program and a $27.6 million special one. The move is part of its previously announced plan that will put $100 million back into shareholders’ pockets after the online trading platform revealed bumper profits for 2022. That includes paying a $30 million dividend to shareholders.

The extra payouts took the year’s buyback programs to $180.2 million and brought total returns to shareholders in 2022 to $270.2million.

Maintaining a balanced approach between funding growth in key channels and returning excess liquidity to shareholders, Plus500 said that it has updated its shareholder returns policy, keeping the current return of at least 50% of the net profit but only via share buybacks. This compares with the previous policy of returning the profit through dividends and share buyback programs, with at least 50% made by way of dividends.