Prudential plc Launches Major USD 1.2 Billion Share Buyback Programme for 2026

Key Highlights

• Prudential plc has announced the launch of a significant share buyback programme valued at up to USD 1.2 billion, set to commence on 6 January 2026 and to be completed no later than 18 December 2026.
• The programme is part of a broader capital management initiative, targeting a total return of over USD 5 billion to shareholders between 2024 and 2027.
• The buyback will be executed by J.P. Morgan Securities plc (JPM) acting independently on behalf of Prudential.
• The programme will reduce the issued share capital, effectively increasing earnings per share and returning capital to shareholders.
• Buybacks will be conducted on the London Stock Exchange and other designated trading venues, but not on the Hong Kong Stock Exchange or in respect of Prudential’s American Depositary Receipts.
• The buyback comprises USD 500 million of recurring capital returns and USD 700 million from the net proceeds of the ICICI Prudential Asset Management Company Limited (IPAMC) IPO.
• Shareholders approved the necessary authority for the programme at the 2025 AGM and may extend at the 2026 AGM, with up to 204 million shares eligible for purchase under the current authority.
• Prudential will continue its neutralisation buyback policy to offset potential dilution from share schemes and scrip dividends, in addition to this new programme.

Details of the Share Buyback Programme

The Board of Prudential plc has unveiled a USD 1.2 billion share buyback programme aimed at reducing its issued share capital and directly returning value to shareholders. The programme is scheduled to run from 6 January 2026 to no later than 18 December 2026. This sizable buyback follows the recent completion of a USD 2 billion share repurchase in 2025, as well as the successful IPO of ICICI Prudential Asset Management Company Limited in December 2025.

The buyback will be split into two main tranches: USD 500 million as recurring capital returns and USD 700 million from the net proceeds of the IPAMC IPO. The remainder of the IPO net proceeds will be returned to shareholders in 2027, indicating an ongoing commitment to shareholder value.

Importantly, the execution of the share buyback is delegated to JPM, who will operate independently, ensuring market integrity and compliance. Prudential has clarified that the maximum financial outlay is USD 1.2 billion (exclusive of related fees, expenses, and stamp duty), equivalent to approximately 3% of the company’s issued share capital as of 5 January 2026.

Strategic Rationale and Potential Share Price Impact

• Management states the buyback is in the best interests of shareholders, aiming to enhance long-term value through capital returns and increased earnings per share.
• The commitment of over USD 5 billion in total returns (2024–2027) signals strong financial health and confidence in future growth prospects.
• The buyback’s size and its linkage to the IPAMC IPO proceeds are major developments that investors should note, given their potential to affect the company’s share price through both increased demand for shares and improved financial ratios.
• Prudential’s ongoing neutralisation buybacks will continue, ensuring that dilution from employee share schemes and scrip dividends is offset. This is in addition to the newly announced USD 1.2 billion programme.

The buyback will be conducted in line with the requirements of UK and Hong Kong regulations, including the UK Market Abuse Regulation, UK Listing Rules, and Hong Kong Code on Share Buy-Backs. Ordinary shares repurchased will be cancelled, reducing the share count and potentially supporting the share price.

Additional Information for Shareholders

• No purchases will be made on the Hong Kong Stock Exchange or in respect of American Depositary Receipts.
• The programme is subject to market conditions and may not be completed in full. There is no guarantee that all authorised shares will be repurchased.
• Further announcements will be made as repurchases occur, and shareholders will be updated regarding terms for the neutralisation buyback in due course.
• The buyback is authorised under the 2025 AGM and may be extended by resolutions at the 2026 AGM.

About Prudential plc

Prudential plc is a leading provider of life and health insurance and asset management services across Greater China, ASEAN, India, and Africa. The group is listed on the Hong Kong, London, Singapore, and New York stock exchanges, with a significant presence in key indices and cross-border trading programs.

Prudential is not affiliated with Prudential Financial, Inc. in the US or The Prudential Assurance Company Limited, a subsidiary of M&G plc.

Contact Information

• Media Enquiries: Simon Kutner (+44 7581 023260, UK), Sonia Tsang (+852 5580 7525, HK), Ming Hau (+44 2039 779293, UK), Bosco Cheung (+852 2918 5499, HK), Tianjiao Yu (+852 2918 5487, HK)
• Investor/Analyst Enquiries: Patrick Bowes (+852 2918 5468, HK), William Elderkin (+44 2039 779215, UK)

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Shareholders and investors are advised to conduct their own research and consult their financial advisors before making investment decisions. The information provided is based on publicly available sources as at the date of the announcement and is subject to change without notice.

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