Prudential plc Announces Share Repurchases and Changes in Issued Share Capital

Key Highlights for Investors

• Significant Share Repurchase Activity: Prudential plc has undertaken a series of share repurchases and cancellations in December 2025, directly impacting its issued share capital.
• Reduction in Issued Shares: As of 18 December 2025, the total number of issued ordinary shares decreased by 773,817, from 2,551,728,855 to 2,550,955,038.
• Purpose of Repurchases: A portion of these repurchases is aimed at neutralising share issuances related to the 2025 scrip dividend.
• Repurchases Executed on the London Stock Exchange: All recent repurchases were made on the London Stock Exchange, not on the Hong Kong Exchange.
• Repurchase Prices: Repurchases were conducted at prices ranging from GBP 11.13 to GBP 11.335 per share, with a total aggregate price paid of GBP 8,368,613.30 for the shares repurchased on 18 December 2025.
• Moratorium on New Issuances: Prudential plc is subject to a moratorium period until 17 January 2026, during which no new share issuances, transfers, or sales of treasury shares may occur without Hong Kong Exchange approval.
• Repurchase Mandate Utilisation: As of this disclosure, Prudential has repurchased 56,942,202 shares under its current mandate, representing approximately 2.19% of the issued shares as of the mandate date (14 May 2025).

Detailed Report

Changes in Issued Share Capital

Prudential plc reported notable changes in its ordinary shares capital:

• Opening balance (17 December 2025): 2,551,728,855 shares.
• Repurchases and cancellations (18 December 2025):
  • 270,000 shares cancelled (GBP 11.0312 per share).
  • 503,817 shares cancelled (GBP 11.0313 per share), specifically to neutralise 2025 scrip dividend share issuances.
• Closing balance (18 December 2025): 2,550,955,038 shares.

These changes represent a reduction of approximately 0.03% in the company’s issued share capital in just two days, which may have an impact on the share price by potentially increasing earnings per share and supporting the share value.

Repurchased Shares Not Yet Cancelled

• As of the reporting date, several batches of shares totalling 1,459,371 have been repurchased but not yet cancelled. These include:
  • 275,000 shares at GBP 11.2546 (17 Dec 2025)
  • 440,944 shares at GBP 11.2624 (17 Dec 2025, for scrip dividend neutralisation)
  • 343,828 shares at GBP 11.2548 (18 Dec 2025)
  • 399,599 shares at GBP 11.2585 (18 Dec 2025, for scrip dividend neutralisation)
• These repurchased shares remain part of the issued share capital until cancellation is completed.

Details of Recent Repurchase Transactions

• On 18 December 2025, Prudential plc repurchased a total of 743,427 ordinary shares on the London Stock Exchange (not on the Hong Kong Exchange), with prices ranging from GBP 11.13 to GBP 11.335 per share.
• The aggregate amount paid for these repurchases was GBP 8,368,613.30.
• All repurchased shares are intended for cancellation, not for holding as treasury shares.

Repurchase Mandate Utilisation

• The company is authorised to repurchase up to 262,668,701 shares under the shareholder-approved mandate dated 14 May 2025.
• To date, 56,942,202 shares have been repurchased under this mandate, equal to 2.19% of the company’s issued shares as of the mandate date.

Moratorium on New Issuance or Treasury Share Sales

• Following these repurchases, Prudential is subject to a mandatory moratorium period until 17 January 2026. During this time, it cannot issue new shares, nor sell or transfer treasury shares, without prior approval from the Hong Kong Stock Exchange.

Implications for Shareholders

• Potential Impact on Share Price: The reduction in the total number of shares outstanding through repurchase and cancellation can enhance key metrics such as Earnings Per Share (EPS) and Return on Equity (ROE), which may be positively viewed by the market.
• Neutralising Dilution from Scrip Dividend: The repurchase programme specifically targeting scrip dividend issuances helps prevent dilution of existing shareholders’ interests.
• Moratorium Considerations: The moratorium on new share issuances may limit short-term dilution risk but could impact capital raising flexibility.
• Shareholder Value Focus: Ongoing buybacks and cancellations indicate management’s commitment to enhancing shareholder value and optimising capital structure.

Conclusion

Prudential plc’s active share repurchase programme, including significant recent buybacks and a moratorium on new issuances, is a material development for shareholders. These actions can influence share supply dynamics, potentially support the share price, and reflect management’s confidence in the company’s prospects and capital strength.

Disclaimer: The above article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult with a financial adviser before making investment decisions. The information is based on company disclosures as of the dates specified and may be subject to change.

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