IG Group Chooses Morgan Stanley for Initial Phase of £150 Million Buyback

IG Group Holdings has declared the launch of a program to repurchase shares worth £75 million. This represents the initial segment of the previously announced £150 million buyback plan. The company is moving forward with this first part of its strategy to repurchase its shares, which is intended to benefit shareholders by enhancing the value of the remaining shares.

Morgan Stanley and Co. International Plc has been chosen by the London-based company to carry out the first part of the buyback. This part will be taking place on the 12th of August 2024 and is expected to conclude by the last quarter of 2024. This idea came after IG Group announced on July 25th that it desires to buy back about £150 million shares.

The Buyback Program Is Solely Intended To Lower The Share Capital

The company explains that the buyback is solely intended to lower the share capital. The program will be carried out following the guidelines given to IG Group’s Board during its annual meeting in September 2023. Under this permission, the company can repurchase a maximum of 19,990,397 shares in the first phase.

Based in London, the company reported total yearly earnings of £987.3 million, which is a 3% drop compared to the previous year. The broker’s yearly net trading revenue also fell by 10% to £844.9 million due to reduced trading activities.

The report highlighted a drop in the number of active clients on its platform to 346,200, down from 358,300, caused by calmer market conditions. Furthermore, the company gained 69,900 new traders, which is a 4% decrease.

The IG Group Has Completed A Share Buyback Program Worth £150 Million

The earlier share buyback program of the same amount started in late 2023 and continued until the end of July 2024. After successfully repurchasing £150 million worth of shares, IG decided to begin another program of the same size.

Chris Old recently took on the role of IG Group’s Head of Organic Growth, a title he shared on his LinkedIn profile last month. He has been with IG Group for more than six years, holding different positions.

His journey at the company began in 2021 as the SEO Manager for the UK, then he advanced to SEO Manager for EMEA and eventually became the SEO Lead for IG.com before achieving his present role. His previous work at Truly Experiences Ltd and Cancer Research UK strengthened his industry background.