Prudential plc Announces Latest Share Repurchase Activity

Overview

Prudential plc has released its Next Day Disclosure Return, detailing recent changes in its issued share capital. This report provides key insights into the company’s share repurchase activities, which are of significant interest to investors and could impact the company’s share price in the near term.

Key Points from the Disclosure

• Share Repurchase and Cancellation: Prudential plc repurchased and cancelled 275,076 ordinary shares on 24 November 2025 at an average price of GBP 10.5196 per share. The total number of issued shares decreased to 2,556,933,053 after this transaction.
• Additional Shares Pending Cancellation: As of the closing balance date, there are 284,632 shares repurchased on 21 November 2025 (GBP 10.3813 per share) and 294,559 shares repurchased on 24 November 2025 (GBP 10.539 per share) that have not yet been cancelled. These shares remain part of the issued capital until the cancellation is completed.
• Repurchase Execution: The most recent repurchase (294,559 shares on 24 November 2025) was conducted on the London Stock Exchange, with prices ranging between GBP 10.475 and GBP 10.605 per share. The aggregate price paid for this tranche was GBP 3,104,358.80.
• Repurchase Mandate: The authority for these buybacks was granted by shareholder resolution on 14 May 2025, allowing the company to repurchase up to 262,668,701 shares. So far, Prudential has repurchased a total of 50,081,015 shares under this mandate, representing approximately 1.92% of the issued share capital as at the date of the resolution.
• Moratorium Period: Prudential is not permitted to issue new shares, or sell or transfer any treasury shares, until 24 December 2025, following these repurchase activities.
• Treasury Shares: No shares have been held as treasury shares as a result of these transactions; all repurchased shares are intended for cancellation.

Implications for Shareholders

• Potential Impact on Share Price: Share buybacks generally reduce the number of shares in circulation, which can enhance earnings per share (EPS) and potentially support the share price, provided other market factors remain stable.
• Significant Buyback Volumes: The ongoing buyback program and the volume of shares repurchased under the current mandate may reflect management’s confidence in the company’s prospects and belief that the shares are undervalued at current levels.
• Price Sensitivity: The repurchase prices (GBP 10.3813 to GBP 10.605) may serve as a reference point for investors evaluating the company’s valuation and management’s perceived fair value of the shares.
• Restriction on New Issuances: The moratorium period means no new shares will be issued, nor will treasury shares be sold or transferred for 30 days following the latest buyback, which can limit dilution risk for existing shareholders in the near term.

Additional Details

• Issuer: Prudential plc (Stock code: 02378; Ordinary shares of GBP 0.05 each)
• Reporting Officer: Florence Ng Wai Yin, Deputy Group Secretary
• Exchange: Shares are listed on the Hong Kong Stock Exchange; buybacks were conducted on the London Stock Exchange.
• No Sale of Treasury Shares: There were no on-market sales of treasury shares reported in this disclosure.

What Investors Should Watch

The continued buyback program, substantial volumes already repurchased, and a clear stance on not issuing new shares in the short term are all factors that could influence Prudential’s share price. Investors are encouraged to monitor further buyback activity and any subsequent disclosures, as these could provide additional signals regarding the company’s capital management strategy and market outlook.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to undertake their own due diligence and consult with professional advisors before making investment decisions. The information above is based on public disclosures and may be subject to change or clarification by Prudential plc.

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