Prudential plc Announces Share Repurchase and Capital Reduction Updates

Key Highlights for Investors

• Issuer: Prudential plc (Stock Code: 02378, Ordinary shares of GBP 0.05 each)
• Date Submitted: 4 February 2026
• Recent Share Repurchases: Significant buybacks and share cancellations executed at premium prices.
• Outstanding Repurchase Mandate: Large capacity remains under current shareholder repurchase authority.
• Temporary Moratorium: New share issues or treasury share sales are restricted for 30 days post-repurchase.

Details of Share Repurchase Activity

Prudential plc reported notable changes in its share capital, primarily driven by its ongoing share repurchase program. The company continues to actively repurchase and cancel its own shares, a move often interpreted as a signal of confidence in the company’s intrinsic value and a way to enhance shareholder value by reducing the number of shares outstanding.

Recent Repurchase and Cancellation Activity

• Shares Repurchased and Cancelled:
  • On 30 January 2026, Prudential repurchased 299,227 shares which were subsequently cancelled on 3 February 2026 at a volume-weighted average price of GBP 12.0204 per share.
  • The total number of issued shares (excluding treasury shares) post-cancellation is now 2,542,168,907.
• Shares Repurchased but Not Yet Cancelled (as of 3 February 2026):
  • On 2 February 2026: 317,142 shares at GBP 12.0211 per share.
  • On 3 February 2026: 265,056 shares at GBP 12.117 per share.

Repurchase Execution Details

• 3 February 2026:
  • 265,056 shares repurchased on the London Stock Exchange.
  • Repurchase price range: GBP 12.005 to GBP 12.235 per share.
  • Total cash outlay for this transaction: GBP 3,211,694.06.
• No shares were repurchased for holding as treasury shares; all repurchased shares are for cancellation, directly reducing the share count.

Repurchase Mandate and Remaining Capacity

• Shareholder Authority: The repurchase mandate was authorized on 14 May 2025 for up to 262,668,701 shares.
• Total Shares Repurchased to Date under Mandate: 64,853,427 (representing 2.49% of issued capital at the time of the mandate).
• Moratorium Period: Under listing rules, Prudential cannot issue new shares, or sell or transfer treasury shares, until 5 March 2026 (30 days after the latest repurchase) unless prior approval is obtained from the Hong Kong Stock Exchange.

Investor Considerations

The ongoing share repurchases and cancellations are materially important for shareholders as they:

• Boost per-share metrics: By reducing the total share count, earnings per share (EPS) and return on equity (ROE) may improve, potentially supporting a higher share price.
• Signal management confidence: The company’s willingness to buy back shares at current market prices suggests management believes the shares are undervalued or see long-term value in returning capital to shareholders.
• Temporary restrictions: The 30-day moratorium on new share issues or treasury share transactions could limit capital-raising flexibility in the short term, but reassures investors that dilution will not occur immediately following buybacks.

These activities and restrictions are significant and could impact the company’s share price and investor sentiment. Shareholders should monitor further disclosures regarding the cancellation of shares repurchased but not yet cancelled, as well as any subsequent buyback programs or changes to capital management strategy.

Additional Information

• No on-market sales of treasury shares were reported during this period.
• All repurchases were conducted in compliance with domestic exchange rules (London Stock Exchange in this instance).

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consult their own advisors and review official company announcements before making investment decisions. The author and publisher accept no responsibility for losses arising from reliance on the information above.

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