Online broker Plus500 initiated a $70 million buyback program, $27.6 million special shares, and $42.4 million closing stock. It is included in the company's $100 million distribution plan.
Plus500, a London-listed global CFD broker, announced in early February it was starting a new $70 million share buyback program. The company carries out stock-buying activities. The buyback program involves two parts of the stock, a $27.6 million special stock buyback and a $42.4 million final stock buyback.
Under this program, the FCA-regulated company buy back up to 9,959,828 shares on the open market and authorizes Jefferies International Limited to manage the buyback program. Before the program started, the company completed a $60.2 million buyback of new shares in November.
This buyback program is part of the broker's $100 million distribution plan to investors. The company will turn the remaining $30 into dividends for shareholders as the company's profits increase in 2022.
In an official announcement, Plus500 said: "This buyback program further underscores the board's continued confidence in Plus500's prospects and reflects its strong financial position. The significant operational and financial momentum is strong evidence of what Plus500 has achieved in recent years as the group continues to pursue its strategic agenda."
In addition, Plus500 had revenue of $832 million in fiscal 2022, up 16% year over year, and EBITDA increased by $453.8 million. Currently, the company is focusing on expanding into geographic markets, one of which is receiving a license from the Dubai Financial Services Authority (DFSA) to strengthen its presence in the Middle East.