Prudential plc Announces Share Repurchases and Cancellations: Key Updates for Investors

Summary of the Disclosure

Prudential plc (Stock Code: 02378), a leading international financial services group, has released its Next Day Disclosure Return in compliance with the Hong Kong Stock Exchange’s listing requirements. The report provides a detailed account of recent changes in Prudential’s issued share capital, focusing on share repurchases, cancellations, and related activities as of 9 December 2025.

Key Points for Investors

• Share Repurchases and Cancellations:
  • On 5 December 2025, Prudential repurchased 268,395 ordinary shares (GBP 0.05 each), which were cancelled on 9 December 2025.
  • The company’s total number of issued shares decreased from 2,554,145,694 to 2,553,877,299 following the cancellation.
  • The repurchase was executed at a volume-weighted average price of GBP 10.8645 per share.
• Additional Shares Repurchased but Not Yet Cancelled:
  • As of 8 December 2025, 275,565 shares were repurchased for cancellation at GBP 11.0553 per share.
  • On 9 December 2025, another 268,193 shares were repurchased for cancellation at GBP 10.9906 per share.
  • These shares have not yet been cancelled but are expected to reduce the share count once the process is complete.
• Repurchase Execution Details:
  • The 268,193 shares repurchased on 9 December 2025 were bought on the London Stock Exchange (not on the Hong Kong Exchange).
  • Purchase price ranged from GBP 10.885 to GBP 11.02 per share, amounting to a total of GBP 2,947,603.49.
• Repurchase Mandate Information:
  • The repurchase mandate was granted on 14 May 2025, covering up to 262,668,701 shares.
  • As of this report, 53,101,336 shares have been repurchased under this mandate, representing approximately 2.04% of the issued shares at the time the mandate was approved.
  • Moratorium Period: After these repurchases, Prudential is restricted from issuing new shares or selling/transferring treasury shares until 8 January 2026.

Implications for Shareholders and Potential Share Price Impact

• Share Buybacks Reduce Supply: The ongoing repurchases and cancellations of shares are reducing the total number of Prudential’s outstanding shares. This can enhance earnings per share (EPS) and potentially support or increase the share price, assuming consistent or improved company performance.
• Significant Capital Allocation: The company continues to allocate significant resources to buybacks, demonstrating management’s confidence in the intrinsic value of the shares.
• Moratorium on New Share Issuance: The restriction on new share issuance or transfer of treasury shares until 8 January 2026 may limit equity dilution in the short term, which is generally positive for existing shareholders.
• Price Sensitivity: The buyback price levels (GBP 10.885 – GBP 11.0553 per share) may serve as a reference point for market participants regarding management’s perceived fair value range for the shares. Large-scale buybacks at these prices can support the share price and signal management’s confidence.
• Regulatory Compliance: All repurchases on other stock exchanges have been conducted in accordance with the relevant domestic rules, ensuring transparency and adherence to regulatory standards.

Additional Notes

• No sales of treasury shares were reported in this disclosure.
• All disclosures are made under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (Main Board and GEM Rules).

Submitted by: Florence Ng Wai Yin, Deputy Group Secretary of Prudential plc

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should do their own research or consult a qualified financial advisor before making investment decisions. All information is based on official company disclosures as of the stated dates; subsequent events may alter the outlook or data.

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