Plus500 Announces £101.3 Million Share Buyback from Odey Asset Management

Plus500, a publicly-listed trading company, has made a significant move by acquiring over 7.3 million ordinary shares from Odey Asset Management LLP. This strategic purchase, valued at approximately £101.3 million, represents approximately 8.2% of the company's issued share capital. The acquisition aligns with Plus500's capital allocation and shareholder return policy, with the newly acquired shares being held in the company's treasury.

The decision to acquire shares from Odey Asset Management reflects Plus500's belief that it serves the best interests of all shareholders. With a strong cash position of over $950 million as of March 31, 2023, Plus500 was well-positioned to make this purchase at an opportune price point.

The acquisition involved the purchase of 7,327,605 shares at a price of 1,383 pence per share, totaling £101.3 million. While this represents the lowest price in over a year, it still stands high in historical terms. Comparatively, three years ago, one Plus500 share was valued at 397 pence, indicating a 250% increase since then.

Importantly, the purchase was separate from the company's ongoing share buyback program, which aims to repurchase up to $70.0 million of the company's ordinary shares. As of June 12, 2023, Plus500 had already repurchased approximately $52 million of its shares under the program.

Following the acquisition, Plus500's total voting rights will amount to 82,512,335, with the company holding 32,376,042 ordinary shares in its treasury. This news has had a positive impact on Plus500's stock, rebounding from annual lows and rising by 8.5% on the London Stock Exchange.

The decision to repurchase shares from Odey Asset Management comes at a time when Plus500 is evaluating options to list its shares in the United States. Frustrated with the company's valuation, the management sees listing in the US as a potential alternative to its current listing in London.

With its strong financial performance, Plus500 reported revenue of $207.9 million and an EBITDA of $100.9 million for the first quarter of 2023. Analysts' consensus predicts further growth, with estimated revenue of $601.2 million and an EBITDA of $266.9 million for the full year, accompanied by earnings per share of $2.43. As a debt-free company, Plus500 ended the first quarter with a substantial cash balance exceeding $950 million.

In addition to expanding its operations in the United States, Plus500 has shown resilience and growth in the face of market challenges. The company entered the US market in 2021 through the acquisition of Cunningham Commodities and Cunningham Trading Systems, and introduced a proprietary futures trading platform tailored for the US market in Q3 2022.

With its strategic acquisition from Odey Asset Management, Plus500 demonstrates its commitment to enhancing shareholder value and seizing advantageous market opportunities. By capitalizing on its strong financial position, Plus500 continues to strengthen its position in the trading industry and deliver value to its shareholders.