Plus500 will hold an Extraordinary General Meeting (EGM) to consider a resolution to authorize the company to make purchases of its own ordinary shares.
Online CFD trading company, Plus500, will hold an Extraordinary General Meeting (EGM) on Monday, 24 July 2023, to consider a resolution to authorize the company to make purchases of its ordinary shares.
The proposed resolution would allow the company to buy back up to 8,240,829 ordinary shares, representing approximately 10% of the company's issued share capital (excluding shares held in treasury). The shares would be purchased for cash at a price of not more than 105% of the average mid-market value for an ordinary share over the previous five business days.
The authority to buy back shares would expire after the Company's Annual General Meeting to be held in 2024 or earlier if the authority is renewed.
The directors of Plus500 unanimously recommend that shareholders vote in favor of the proposed resolution.
The EGM will be held at 10:00 am (UK time) on Monday, 24 July 2023, at the offices of Liberum Capital Limited, Ropemaker Place, 25 Ropemaker Street, London EC2Y 9LY.
There are several reasons why the multi-regulated broker might be considering share buybacks. One of the reasons is to reduce the number of shares in the issue, which would increase the earnings per share (EPS). Another reason is to return cash to shareholders, which could be done by issuing a special dividend or buying back shares.
Share buybacks can signal to the market that the company believes its shares are undervalued. This can help to boost the share price and attract new investors.