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Plus500 Spends to Buy Back Own Shares 

UK-listed broker Plus500 has continued the purchase of its ordinary shares. This was under its recent program of repurchasing $67.3 million of its own shares.

Filings with the London Stock Exchange show that the broker bought 34,000 and 33,000 of its ordinary shares of ILS 0.01. Each batch was through the Credit Suisse Securities (Europe) Limited on Friday and Monday respectively.

The broker paid a volume-weighted average price of £14.42 on Friday. The average went up to £14.87 in the next trading session.

This means, in the last two trading sessions, the company paid £490,280 and £490,710 respectively in purchasing the shares.

Plus500 noted in the recent filing that the company will hold the repurchased shares in its treasury. Following the purchase of these shares, the remaining number of ordinary shares in issue will be 105,844,043.

That excludes treasury shares, and the company will thus hold 9,044,334 ordinary shares in its treasury.

 

Buy Back When Prices are Low

Plus500 announced the latest share buyback program earlier this month while reporting its half-yearly finances. It showed a 281 percent uptick in its revenue.

Since then, the company has bought its shares in six trading sessions, including the recent two. The ongoing buyback program will go on until February 28, 2021.

It is also possible for Plus500 to end the program earlier. That will be on the announcement of its preliminary results for the year ending on the 31st of December 2020.

As the COVID-19 induced market volatility benefited the brokers, the brokerage also boomed. The platform’s shares jumped over 70 percent since the beginning of 2020.

They are currently trading at £14.82 apiece, as of press time.

The broker started the purchases slowly. They bought only 4,119 of its ordinary shares on August 11 and another 5,313 shares on August 18.

As the company share prices gained upward momentum, however, the size of the batches also increased significantly.

The broker is continuously extending its share buyback program. It also ran two share buyback programs of $30 million and $60 million respectively, before the ongoing program.

 



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