On November 1st, 2022, Plus500, a London-listed broker, declared another phase of its buyback plan. The broker announced that it was aiming for a $60.2 million buyback plan. This action corroborates the broker's announcement in August to embark on a buyback sphere after a successful first half of 2022.
Details of Plus500's Latest Buyback
Many investors are counting their losses from the lowdown on cryptocurrency, which began in 2021. However, these increased market fluctuations and the broker's expansion into new markets via its introduction of new products have all been advantageous for Plus500.
Plus500, earlier in October, shared a trading update, where the broker projected that it would have a full-year revenue and profit that surpasses previous market forecasts. According to the broker's public release, "The Share Buyback Programme's goal is to emphasize the Board's conviction in the potential of Plus500 and its excellent financial position."
The buyback runs from November 1st, 2022, to January 2023. Plus500's preliminary financial results, released on December 31st, 2022, will precisely determine how long the buyback will be in 2023. Until then, Plus500 continues to benefit from this recent buyback, as its share value has risen by a few percentages since the announcement. (Plus500 Signs A Four-year Deal With the Chicago Bulls After Their Launch In The United States)
Plus500 and Its Historic Buybacks
Plus500 is one broker in retail FX and CFD trading which has experienced drastic changes under its recent board. The broker has made the news these past months with the buyback of its publicly traded shares. The broker began the buyback at the start of 2022 under two schemes, with a plan to invest $55 million in one scheme and $50 million in the other.
In 2020, Plus500 repurchased its common stock shares for $88.8 million on the open market. In 2021, the broker launched a second $25 million scheme and topped the stipulated amount with $12.5 million later that year.
In Q3 of 2022, Plus500 made $194.5 million in sales. Within its current five year plan, the broker aims to reach an incremental annualized revenue objective of about $500 million. (Here are the best Forex Brokers in 2022)
Plus500 is a multinational, multi-asset fintech company that runs its trading platforms with its proprietary technology. This trading platform is powered by Plus500UK Ltd, a UK-based business headquartered in London. The Financial Conduct Authority (FCA) has authorized and regulated the company to provide Contracts for Difference (CFD).
In the US, Plus500 provides its clientele various trading instruments, such as contracts for difference (CFDs) and share dealing. The broker also provides futures trading to its clientele. Plus500 is a member of the FTSE 250 index and has a premium listing on the London Stock Exchange.