Prudential plc Announces Share Repurchase and Cancellation – Key Details for Investors

Summary of Key Developments

Prudential plc, an equity issuer listed on The Stock Exchange of Hong Kong (Stock Code: 02378), has released its Next Day Disclosure Return, reporting recent share repurchases and cancellations as of 5 February 2026. These transactions are made under the company’s ongoing share repurchase mandate and may have implications for shareholders and the market valuation of Prudential plc.

Detailed Breakdown of Share Repurchases and Cancellations

1. Recent Share Repurchase Activity

• Repurchase and Cancellation: On 2 February 2026, Prudential repurchased 317,142 ordinary shares (GBP 0.05 each) at a volume-weighted average price of GBP 12.0211 per share. These shares were cancelled on 4 February 2026.
• Impact on Share Capital: After this cancellation, the number of issued shares (excluding treasury shares) decreased from 2,542,168,907 to 2,541,851,765. This represents a 0.012475% reduction in the company’s issued shares.

2. Shares Repurchased Pending Cancellation

• Shares repurchased on 3 February 2026: 265,056 shares at a volume-weighted average price of GBP 12.117 per share. These shares have been repurchased for cancellation but were not yet cancelled as of the reporting date.
• Shares repurchased on 4 February 2026: 286,469 shares at a volume-weighted average price of GBP 12.2883 per share. These shares are also pending cancellation.

Note: Shares repurchased but not yet cancelled remain part of the issued share capital until cancellation is completed.

3. Repurchase on London Stock Exchange

• On 4 February 2026, Prudential repurchased 286,469 shares on the London Stock Exchange, at prices ranging from GBP 12.205 to GBP 12.375 per share, for a total aggregate consideration of GBP 3,520,226.53.
• These shares are earmarked for cancellation and not to be held as treasury shares.

4. Repurchase Mandate Details

• Shareholder Approval: The repurchase mandate was approved on 14 May 2025, authorizing the repurchase of up to 262,668,701 shares.
• Progress: As of the latest disclosure, 65,139,896 shares have been repurchased under this mandate, representing approximately 2.5% of the issued share capital at the time of mandate approval.
• Moratorium Period: Following these repurchases, Prudential cannot issue new shares, or sell or transfer any treasury shares, until 6 March 2026 unless otherwise approved by the Exchange. This restriction may affect the company’s capital-raising flexibility in the short term.

Implications and Shareholder Considerations

• Potential Price Sensitivity: Share repurchases and cancellations generally reduce the number of outstanding shares, which can improve earnings per share (EPS) and potentially support the share price, subject to market conditions.
• Liquidity and Supply: The ongoing repurchase program reduces share supply, which may have a tightening effect on liquidity and support valuation metrics.
• Transparency: Investors should note the company’s disclosure of both completed and pending cancellations, ensuring transparency around actual share count and capital management actions.
• Mandate Utilization: The company still has significant capacity under its current repurchase mandate, suggesting further buybacks may occur, potentially continuing to influence share value.
• Moratorium Impact: The temporary restriction on new share issues or treasury share sales may affect future capital raising or strategic initiatives.

Conclusion

The latest share repurchase and cancellation activities by Prudential plc represent an active use of the company’s buyback mandate, reducing share count and potentially supporting shareholder value. Investors should monitor for further disclosures, as continued repurchases and the moratorium period may have ongoing implications for capital structure and share price dynamics.

Submitted by:

Florence Ng Wai Yin
Deputy Group Secretary

Disclaimer: The above summary is based on official disclosure documents and is provided for informational purposes only. This is not investment advice. Market conditions and company actions may change, so investors should conduct their own research or consult professional advisors before making investment decisions.

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