Overview

Prudential plc, a prominent equity issuer listed on the Hong Kong Stock Exchange (Stock Code: 02378), has released its Next Day Disclosure Return detailing recent changes to its issued share capital. The report outlines significant share repurchase activity and provides critical updates on the company’s share structure as of 5 November 2025.

Key Points for Investors

• Share Repurchase and Cancellation: Prudential repurchased 280,263 ordinary shares (GBP 0.05 each) on 3 November 2025. These shares were subsequently cancelled on 5 November 2025.
• Repurchase Price: The volume-weighted average repurchase price for these shares was GBP 10.7554 per share.
• Impact on Issued Shares: The total number of issued shares was reduced from 2,560,884,807 to 2,560,604,544, representing a decrease of 0.010944% in the company’s issued share capital.
• Additional Repurchases Pending Cancellation: As of the reporting date, further shares have been repurchased for cancellation but are not yet cancelled:
  • On 4 November 2025: 281,533 shares at GBP 10.6645 per share
  • On 5 November 2025: 280,048 shares at GBP 10.8083 per share
• Repurchase Execution: The repurchase on 5 November 2025 (280,048 shares) was conducted on the London Stock Exchange, not on the Hong Kong Exchange. The highest price paid was GBP 10.87, and the lowest was GBP 10.635, with a total aggregate paid of GBP 3,026,844.30.
• Repurchase Mandate:
  • Repurchase mandate was granted on 14 May 2025.
  • Total shares authorised for repurchase under the mandate: 262,668,701.
  • Shares repurchased so far under the mandate: 46,391,914, equating to 1.781167% of the issued shares as at the date of the mandate.
  • A moratorium period exists for any issue of new shares, sale, or transfer of treasury shares until 5 December 2025, following these repurchase activities.

Potential Investor Impact and Price Sensitivity

• Reduction in Share Capital: The ongoing share repurchases and cancellations effectively reduce the number of shares in circulation. This can be price sensitive as fewer shares may lead to higher earnings per share (EPS), potentially supporting the share price, especially if repurchases continue at scale.
• Shareholder Value: The repurchase at a premium (GBP 10.7554 average price, recent trades above GBP 10.80) signals management’s confidence in the company’s value and may be interpreted positively by the market.
• Moratorium on New Issues: The 30-day moratorium post-repurchase restricts Prudential from issuing new shares or transferring treasury shares, which may limit short-term dilution risk and could support the share price.
• Active Management of Capital Structure: The substantial repurchase mandate (over 262 million shares authorised, with more than 46 million already repurchased) demonstrates active capital management, which could be viewed favorably by investors seeking buybacks as a form of capital return.
• No Treasury Shares Held: All repurchased shares are being cancelled, not held as treasury shares, ensuring permanent reduction in share count.

Additional Information

• The repurchases have all been made on the London Stock Exchange, complying with domestic rules for such transactions.
• No on-market sale of treasury shares has been reported during the period.

Conclusion

Prudential plc’s recent and ongoing share repurchase activities lead to a reduction in the issued share capital, a move that may be price-sensitive and supportive of existing shareholders’ interests. The company’s strong buyback mandate and active execution reinforce management’s commitment to enhancing shareholder value.

Disclaimer

This article is intended for informational purposes only and does not constitute investment advice. Investors should perform their own due diligence and consult professional advisors before making any investment decisions. The information is based on the latest company disclosures as of 6 November 2025 and may be subject to change.

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