REG - Prudential PLC - Launch of USD 1.2 billion share buyback programme

PrudentialAnnouncement

06/01/2026 07:00

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RNS Number : 7231N  Prudential PLC  06 January 2026

 

Prudential announces launch of USD 1.2 billion share buyback programme

 

Prudential plc (the "Company") announces that it will commence a buyback
programme of its ordinary shares up to a maximum aggregate amount of USD 1.2
billion (the "Programme"). Given the size of the Programme, it is intended
that it will be completed by no later than 18 December 2026.

 

The purpose of the Programme is to reduce the issued share capital of the
Company in order to return capital to shareholders. The Directors consider the
Programme to be in the best interests of the Company and of its shareholders
generally.

 

Anil Wadhwani, Chief Executive Officer, said: "I am pleased with the progress
we are making in executing our strategy. The significant growth opportunities
ahead of us have not changed and we remain firmly focused on creating
long-term shareholder value through high quality, sustainable growth, and
consistent delivery of shareholder returns."

 

Our capital management programme was communicated on 27 August and is expected
to return to shareholders over USD 5 billion over the period 2024-2027, before
the intended return to shareholders of the net proceeds from the initial
public offering of ICICI Prudential Asset Management Company Limited ("IPAMC
IPO").

 

We announced on 23 December 2025 that we had completed the final tranche of a
USD 2 billion buyback programme in 2025 and on 19 December 2025 that we had
completed the IPAMC IPO.

 

Accordingly, we will now commence a buyback of USD 1.2 billion to be executed
in 2026, comprising USD 500 million of recurring capital returns and USD 700
million of net proceeds from the IPAMC IPO. The balance of the net proceeds
from the IPAMC IPO will be returned to shareholders during 2027.

 

The pace, timing of and form of the proposed returns of capital will be
subject to market conditions and execution considerations, including
discretion given to a third party for execution during closed periods.

 

Terms of the Programme

 

The Company has entered into an arrangement with J.P. Morgan Securities plc
("JPM") (acting as riskless principal) to conduct the buyback in respect of
the Programme on its behalf and to make trading decisions in respect of the
Programme independently of the Company (the "Agreement").

 

The arrangement with JPM enables the purchase of ordinary shares in the issued
share capital of the Company ("Ordinary Shares") for a period from 6 January
2026, and will complete no later than 18 December 2026. The aggregate maximum
pecuniary amount allocated to the Programme is USD 1.2 billion (exclusive of
associated fees, expenses and stamp duty) (equivalent to GBP 889 million and
HKD 9,342 million, in each case based on the closing exchange rate between USD
and GBP and USD and HKD as of 5 January 2026 GMT) representing an amount equal
to the aggregate value of approximately 3% of the Company's issued share
capital at the closing share price on 5 January 2026.

 

JPM may effect purchases of Ordinary Shares under the Programme on the London
Stock Exchange and/or other trading venues(1) for subsequent purchase by the
Company. Purchases by the Company will be treated as on-exchange transactions
subject to the Listing Rules of the London Stock Exchange and as on-market
purchases for the purpose of the Hong Kong Code on Share Buy-Backs. The
Company intends that any Ordinary Shares purchased will be cancelled.

 

The Programme will be conducted in accordance with the authority to purchase
Ordinary Shares granted by shareholders at the Company's 2025 Annual General
Meeting and any authority granted by shareholders at the Company's 2026 Annual
General Meeting. The maximum number of Ordinary Shares which may be purchased
by the Company under the Programme is 204 million (being the number of
Ordinary Shares remaining under the authority granted by shareholders at the
Company's 2025 Annual General Meeting) taken together with such number of
Ordinary Shares under any authority granted by shareholders at the Company's
2026 Annual General Meeting.

 

The Programme will be conducted within the parameters prescribed by the Market
Abuse Regulation 596/2014/EU (as in force in the UK and as amended by the
Market Abuse (Amendment) (EU Exit) Regulations 2019), the Commission Delegated
Regulation 2016/1052/EU (as in force in the UK and as amended by the FCA's
Technical Standards (Market Abuse Regulation) (EU Exit) Instrument 2019) and
in accordance with Chapter 9 of the UK Listing Rules, the Hong Kong Listing
Rules and the Hong Kong Code on Share Buy-backs. No purchase of Ordinary
Shares will be conducted on the Hong Kong Stock Exchange. No purchases will be
made in respect of the Company's American Depositary Receipts.

 

The Company will make further announcements in due course following any
purchase of Ordinary Shares. There is no guarantee that the Programme will be
implemented in full or that any Ordinary Shares will be purchased by the
Company.

 

The Company intends to continue its existing practice of conducting share
buybacks in order to offset the actual or expected dilutive effects from the
vesting of awards under employee and agent share schemes and the issuance of
Ordinary Shares under any scrip dividend alternative for future dividends (if
offered) (the "Neutralisation Buyback"). Such repurchases would be in addition
to the Programme announced today. Under the terms of the Agreement, JPM has
agreed to conduct the Neutralisation Buyback (acting as riskless principal),
subject to the determination by the Company of the final terms of the
Neutralisation Buyback. The Company will release a further announcement in
respect of the Neutralisation Buyback once those terms have been determined.

 

 

(1) Specifically Aquis Exchange Europe, Cboe Europe Limited through the BXE
and CXE order books, and any multilateral trading facility operated by
Turquoise Global Holdings Limited, each being a trading venue (as defined in
the Market Abuse Regulation) in the United Kingdom where the Ordinary Shares
are admitted to trading or traded.

 

Contact

 Media                              Investors/analysts
 Simon Kutner  +44 7581 023260  UK  Patrick Bowes     +852 2918 5468     HK
 Sonia Tsang   +852 5580 7525   HK  William Elderkin  +44 2039 779215    UK
                                    Ming Hau          +44 2039 779293    UK
                                    Bosco Cheung      +852 2918 5499     HK
                                    Tianjiao Yu       +852 2918 5487     HK

About Prudential plc

 

Prudential provides life and health insurance and asset management in Greater
China, ASEAN, India and Africa. Prudential's mission is to be the most trusted
partner and protector for this generation and generations to come, by
providing simple and accessible financial and health solutions. The business
has dual primary listings on the Stock Exchange of Hong Kong (HKEX: 2378) and
the London Stock Exchange (LSE: PRU). It also has a secondary listing on the
Singapore Stock Exchange (SGX: K6S) and a listing on the New York Stock
Exchange (NYSE: PUK) in the form of American Depositary Receipts. It is a
constituent of the Hang Seng Composite Index and is also included for trading
in the Shenzhen-Hong Kong Stock Connect programme and the Shanghai-Hong Kong
Stock Connect programme.

 

Prudential is not affiliated in any manner with Prudential Financial, Inc. a
company whose principal place of business is in the United States of America,
nor with The Prudential Assurance Company Limited, a subsidiary of M&G
plc, a company incorporated in the United Kingdom.

 

www.prudentialplc.com/ (http://www.prudentialplc.com/)

 

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