Prudential plc Announces Share Repurchase and Changes in Issued Share Capital

Date: 18 November 2025

Key Highlights from the Next Day Disclosure Return

• Issuer: Prudential plc (Stock code: 02378)
• Class of Shares: Ordinary shares of GBP 0.05 each
• Event: Significant share repurchase and cancellation activities
• Reporting Exchange: The Stock Exchange of Hong Kong Limited

Details of Share Repurchase & Cancellation

Prudential plc disclosed material changes in its issued share capital, which could be of significant interest and potential impact to shareholders and investors:

• Repurchase and Cancellation on 17 November 2025:
  • Number of shares repurchased and cancelled: 275,012
  • Percentage of existing issued shares (pre-event): 0.010748%
  • Repurchase price per share: GBP 10.9434
  • Closing balance of issued shares after event: 2,558,363,221
• Shares Repurchased for Cancellation but Not Yet Cancelled:
  • 14 November 2025: 273,186 shares at GBP 10.7159 per share (0.010677%)
  • 17 November 2025: 279,010 shares at GBP 10.7306 per share (0.010905%)

Repurchase Report: Additional Insights

• Latest Repurchase Activity:
  • Date: 17 November 2025
  • Number of shares repurchased: 279,010
  • Method: Repurchase on another stock exchange (London Stock Exchange)
  • Repurchase price range: GBP 10.69 – GBP 10.795 per share
  • Total aggregate price paid: GBP 2,993,946.21
• Mandate Information:
  • Date of repurchase mandate resolution: 14 May 2025
  • Total shares authorized for repurchase under mandate: 262,668,701
  • Total shares repurchased under mandate to date: 48,623,852
  • This represents 1.86686% of the issued shares as at the date of the resolution
  • Moratorium period: No new issue, sale, or transfer of treasury shares allowed until 17 December 2025 (30 days post-repurchase)

What Shareholders Need to Know

• Capital Reduction: The company continues to actively repurchase and cancel shares, indicating a reduction in share capital. This can be price sensitive as it typically increases Earnings Per Share (EPS) and may support the share price.
• Utilization of Mandate: Nearly 18.5% of the authorized repurchase mandate has already been utilized, reflecting management’s commitment to returning value to shareholders.
• Moratorium Period: The company is restricted from issuing new shares or dealing in treasury shares for 30 days following this repurchase, which could temporarily limit dilution risks but may also restrict capital-raising flexibility.
• Repurchase Prices: The volume-weighted average repurchase prices (GBP 10.7159 – GBP 10.9434) may serve as a near-term support level for the stock in the market, as it suggests the company’s view of fair value.

Implications for Share Price

The active share buyback and cancellation program signals management’s confidence in the company’s value and is generally viewed positively by the market. The reduction in outstanding shares can lead to higher per-share financial metrics (such as EPS and book value per share), which is often supportive for share price performance. Investors should also monitor the moratorium period, as the inability to issue new shares could influence liquidity and strategic options in the short term.

Conclusion

Prudential plc’s ongoing share buyback and cancellation activities, coupled with the moratorium on new share issues, are significant corporate actions that shareholders should closely watch. These changes are likely to be price sensitive and could positively affect the share value, especially if buybacks continue at current or higher price levels. Shareholders and potential investors are advised to consider these developments in their investment decisions.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult with a professional adviser before making investment decisions.

View Prudential USD Historical chart here