Prudential plc Announces Share Buybacks and Changes in Issued Share Capital

Summary of Key Developments

• Significant Share Buybacks: Prudential plc has executed substantial share repurchases totaling 785,904 ordinary shares between 16 and 18 February 2026, with an aggregate buyback value of GBP 8,652,881.40.
• Reduction in Issued Share Capital: The total issued shares (excluding treasury shares) decreased from 2,539,510,032 to 2,538,079,313 as of 18 February 2026, representing a reduction of approximately 0.0564% within a week.
• Share Awards/Options: A minor increase in shares (1,357 new shares) resulted from the exercise of options under the 2023 Prudential Sharesave Plan, issued at GBP 5.20 per share.
• Repurchase Prices: The repurchase prices ranged from GBP 10.825 to GBP 11.24 per share, executed on the London Stock Exchange.
• Outstanding Repurchases: As of 18 February 2026, a further 537,833 shares had been repurchased but were not yet cancelled, with a combined value at repurchase of over GBP 5.8 million, potentially impacting the number of shares in issue in the near term.
• Buyback Mandate Status: After the latest buybacks, Prudential has repurchased 68,900,013 shares (2.65% of its issued shares as at the date of the repurchase mandate) out of the 262,668,701 shares authorized for buyback.
• Moratorium Period: Prudential is subject to a moratorium period for new share issues or transfers of treasury shares until 20 March 2026 following these buybacks.

Details of Share Repurchases and Capital Changes

What Investors and Shareholders Need to Know

• Share Buybacks as a Signal: The ongoing and sizeable buyback program demonstrates Prudential’s confidence in its own valuation and a commitment to returning value to shareholders. Such buybacks can be supportive for the share price by reducing the float and potentially enhancing earnings per share (EPS).
• Potential for Further Capital Reduction: With additional shares already repurchased but not yet cancelled, investors should expect a further decrease in the total number of shares in issue soon, which could further support EPS and share value.
• Moratorium on New Share Issues: The company is restricted from issuing new shares or selling treasury shares until 20 March 2026, which means there will be no dilution risk in the immediate term.
• Price Paid for Buybacks: The repurchase prices (GBP 10.825 – GBP 11.24) are close to recent trading ranges, potentially signaling management’s view of fair value and providing a floor to the share price in the near term.
• Share Option Exercise: The issuance of new shares via option exercise (at GBP 5.20, well below recent buyback prices) is minimal in volume and unlikely to affect the share price or dilution meaningfully.
• Repurchase Mandate Utilization: Prudential has substantial headroom remaining under its buyback mandate, with only 2.65% of the authorized shares repurchased to date, suggesting the potential for further buybacks.
• Regulatory Compliance: All actions were confirmed as compliant with Hong Kong listing rules and legal requirements, assuring shareholders of regulatory oversight and proper governance.

Potential Share Price Implications

The combination of continued share buybacks, the absence of new share issues until late March, and a shrinking share base is likely to be viewed positively by the market. These actions could support the Prudential share price, reduce dilution risk, and enhance per-share financial metrics such as EPS.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Please consult with a professional advisor before making any investment decisions.

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