Prudential plc Announces Substantial Share Repurchase Activity and Changes in Issued Share Capital

Key Highlights from Latest Next Day Disclosure Return

• Share Repurchases and Cancellations: Prudential plc has engaged in significant share repurchase activities, with a total of 715,944 ordinary shares repurchased and cancelled on 19 December 2025, including shares bought to neutralise new issuances for the 2025 scrip dividend.
• Issued Share Capital Update: Following these repurchases, the total number of issued ordinary shares (excluding treasury shares) stands at 2,550,239,094.
• Additional Shares Pending Cancellation: As of the closing balance date, a further 1,599,668 shares have been repurchased for cancellation but have not yet been cancelled. These include shares acquired both as general repurchases and specifically to offset scrip dividend issuances.
• Repurchase Price Details: Repurchase prices ranged from GBP 11.2546 to GBP 11.4194 per share for the shares cancelled, and up to GBP 11.485 per share for shares repurchased on the London Stock Exchange.
• Aggregate Spend on Repurchases: On 19 December 2025, Prudential spent a total of GBP 9,775,890.97 acquiring 856,241 shares on the London Stock Exchange.
• Repurchase Mandate and Compliance: The repurchase activities are conducted under a shareholder-approved mandate dated 14 May 2025, which authorised up to 262,668,701 shares for buyback. As of this disclosure, 57,798,443 shares have been repurchased under this mandate, representing 2.22% of the issued share capital at mandate approval.
• Moratorium Period: Prudential is subject to a moratorium on new share issues or sales of treasury shares until 18 January 2026, following these repurchases.

Implications for Shareholders and Potential Price Sensitivity

• Share Buybacks Typically Support Share Price: The ongoing buyback and cancellation of shares may result in a positive impact on the share price through earnings per share accretion and a reduction in supply.
• Significant Buyback Volumes: The scale of buybacks under the repurchase programme (over 57 million shares so far under the current mandate) indicates management’s active approach to capital management, which could be viewed favourably by investors.
• Repurchase Programme to Offset Scrip Dividend Dilution: The repurchase programme is specifically designed to neutralise the dilution effect from new shares issued for the 2025 scrip dividend. This is important for shareholders concerned about dilution.
• Moratorium on New Share Issues: The 30-day moratorium on new share issues or treasury share sales post-repurchase sets a clear window where no further dilution can occur, providing short-term certainty for existing investors.
• No Treasury Shares Held: All repurchased shares are cancelled rather than held as treasury shares, meaning direct reduction in share capital rather than potential future sales.

Detailed Share Repurchase Transactions

What Investors Should Watch

• Further Buybacks: The remaining authorisation under the buyback mandate suggests more repurchase activity could follow, potentially further supporting the share price.
• Cancellation Timing: Shares pending cancellation may reduce the issued share capital further once processed.
• Dividend Policy: The use of buybacks to offset scrip dividend dilution may shape future capital return strategies.
• Market Reaction: Investors should monitor how the market responds to the buyback volumes and the transparency of the company’s capital management.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with their financial advisor before making investment decisions. The information presented is based on the company’s latest regulatory disclosure and may be subject to change.

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