Prudential plc Announces Share Repurchase and Issued Shares Changes

Prudential plc has submitted a Next Day Disclosure Return, detailing significant changes in its issued share capital and providing insights into its ongoing share repurchase program. This disclosure is made in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

Key Points from the Report

• Reduction in Issued Shares: Prudential plc repurchased and cancelled 265,056 ordinary shares on 5 February 2026, reducing its issued share count from 2,541,851,765 to 2,541,586,709 ordinary shares. This represents a 0.010428% reduction in issued shares.
• Repurchase Price: The volume-weighted average repurchase price for the cancelled shares was GBP 12.117 per share.
• Further Shares Pending Cancellation:
  • On 4 February 2026, 286,469 shares were repurchased (not yet cancelled as of reporting), at an average price of GBP 12.2883 per share.
  • On 5 February 2026, an additional 494,445 shares were repurchased (not yet cancelled), at an average price of GBP 11.8709 per share.
• Total Shares Repurchased (Recent Event): On 5 February 2026, Prudential plc repurchased 494,445 shares on the London Stock Exchange, at prices ranging from GBP 11.685 to GBP 12.135. The aggregate price paid for this repurchase was GBP 5,869,512.61.
• Repurchase Mandate: The repurchase of shares is conducted under a shareholder-approved mandate dated 14 May 2025, which authorizes the company to repurchase up to 262,668,701 shares. As of this report, 65,634,341 shares have been repurchased under this mandate, representing 2.52% of issued shares at the time of the mandate.
• Moratorium on New Issues: After these repurchases, Prudential plc is prohibited from issuing new shares or selling/transferring treasury shares until 7 March 2026, in accordance with regulatory requirements.

Implications for Shareholders and Potential Price Sensitivity

• Share Capital Reduction: The ongoing share repurchase and cancellation program reduces the number of issued shares, which can potentially increase earnings per share (EPS) and shareholder value, assuming constant profitability. This can be regarded as price-sensitive information.
• Significant Cash Outflows: The company has spent millions of pounds in recent repurchases, indicating an active approach to shareholder returns and possibly signaling confidence in the company’s intrinsic value.
• Moratorium on New Issues: The moratorium on issuing new shares or selling treasury shares until 7 March 2026 means that dilution risk is minimized in the short term, which may be positive for existing shareholders.
• Price Range of Repurchases: The repurchase prices clustered around GBP 12 per share may provide a near-term valuation anchor for investors and could influence trading dynamics.

Additional Details

• Location of Repurchases: All recent repurchases were conducted on the London Stock Exchange, not the Hong Kong Exchange.
• Compliance: Prudential plc confirms that all repurchases comply with domestic regulations of the relevant stock exchange.
• Reporting Officer: The disclosure was submitted by Florence Ng Wai Yin, Deputy Group Secretary.

Conclusion

The active repurchase and cancellation of shares by Prudential plc, combined with a moratorium on new share issues, signals a focus on enhancing shareholder value and confidence in the company’s prospects. Investors should monitor these developments closely, as they can impact the company’s share price, capital structure, and future dividend policy.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are encouraged to conduct their own research and consult with professional advisors before making investment decisions. The information above is based on official disclosures and may be subject to change.

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