CMC Markets (LON: CMCX) has launched its share buyback program on Tuesday with an allocation of £30 million, the London-headquartered broker announced. This step has been taken for reducing the share capital of the company.
“The Buyback Programme will commence immediately and will be completed no later than 30 June 2023, subject to continuing regulatory approval,” the broker said.
CMC has further detailed that the maximum aggregate number of shares it is trying to repurchase is 29,071,747 ordinary shares. It has already appointed RBC Europe Limited to manage the Buyback Programme on its behalf.
Big Plans
The London-headquartered broker first revealed its intentions to launch such a program on March 2, but then its fate was dependent on pending regulatory approval.
“In light of the Company’s robust capital position and having considered the ongoing investment in the business, the Board has decided to return excess capital to shareholders via the repurchase of ordinary shares,” CMC said earlier.
The company is considering the buyback program as a part of a normal balanced approach to shareholder returns alongside the current dividend policy, which is unchanged. However, it stressed that the full-year financial guidance of the company will remain unchanged.
Earlier, the broker lowered its income expectation from more than £330 million to between the range of £250 million and £280 million.
CMC is a London-based broker with regulated operations across the globe. Its offerings include trading with currency pairs, contracts for differences and spread betting. It is also in the process of launching a new UK investment D2C and B2B platforms that will offer investment products and physical shares, among others.
Apart from the buyback program, the company is also considering splitting its leveraged and non-leveraged businesses. The board believes that it is in the interest of maximizing shareholder value, but talks are still in the early stages.
CMC Markets (LON: CMCX) has launched its share buyback program on Tuesday with an allocation of £30 million, the London-headquartered broker announced. This step has been taken for reducing the share capital of the company.
“The Buyback Programme will commence immediately and will be completed no later than 30 June 2023, subject to continuing regulatory approval,” the broker said.
CMC has further detailed that the maximum aggregate number of shares it is trying to repurchase is 29,071,747 ordinary shares. It has already appointed RBC Europe Limited to manage the Buyback Programme on its behalf.
Big Plans
The London-headquartered broker first revealed its intentions to launch such a program on March 2, but then its fate was dependent on pending regulatory approval.
“In light of the Company’s robust capital position and having considered the ongoing investment in the business, the Board has decided to return excess capital to shareholders via the repurchase of ordinary shares,” CMC said earlier.
The company is considering the buyback program as a part of a normal balanced approach to shareholder returns alongside the current dividend policy, which is unchanged. However, it stressed that the full-year financial guidance of the company will remain unchanged.
Earlier, the broker lowered its income expectation from more than £330 million to between the range of £250 million and £280 million.
CMC is a London-based broker with regulated operations across the globe. Its offerings include trading with currency pairs, contracts for differences and spread betting. It is also in the process of launching a new UK investment D2C and B2B platforms that will offer investment products and physical shares, among others.
Apart from the buyback program, the company is also considering splitting its leveraged and non-leveraged businesses. The board believes that it is in the interest of maximizing shareholder value, but talks are still in the early stages.
Source: https://www.financemagnates.com/forex/brokers/cmc-markets-launches-30-million-share-buyback-program/