IG Group Launches £150 Million Share Buyback Tranche

<p>IG Group
Holdings plc has initiated the second phase of its share buyback program,
committing to repurchase up to £150 million worth of its own shares. This move
follows the original announcement on 20 July 2023, outlining a comprehensive
£250 million buyback plan.</p><p>IG Group Commences the
Second Phase of Buyback</p><p>The
financial services provider has set in motion the second tranche of its share
buyback program, with the assistance of JP Morgan Securities plc. This
tranche, amounting to a substantial £150 million, is set to begin on 7 November
2023, with a completion target set for no later than 31 July 2024.</p><p>The primary
objective is to streamline the company's share capital, a strategy often
employed by firms seeking to optimize shareholder value. The <a href="https://www.financemagnates.com/terms/e/execution/">execution</a> of this
tranche will operate within the limitations of the authority granted to the <a href="https://www.financemagnates.com/tag/ig-group/" target="_blank" rel="follow">IG
Group's Board</a> during the annual general meeting on 20 September 2023. Within
this framework, the company has the capacity to repurchase as many as
40,452,304 shares.</p><p>The shares
of the publicly listed company did not immediately react to the news. On the
London Stock <a href="https://www.financemagnates.com/terms/e/exchange/">Exchange</a>, they are currently trading hands at 665.5 pence, marking
a slight drop of 0.23%.</p><p>As reported
by <a href="https://www.financemagnates.com/" target="_blank" rel="follow">Finance Magnates</a>, the first tranche of the share buyback <a href="https://www.financemagnates.com/forex/news-nuggets-2-august-igs-share-buyback-new-features-on-fortex/" target="_blank" rel="follow">was executed in
August</a> and covered up to £100 million. The announcement of the new share
buyback program <a href="https://www.financemagnates.com/forex/brokers/ig-group-ends-fy23-with-lower-trading-revenue-expands-share-buyback/" target="_blank" rel="follow">was made a month earlier</a> when IG Group reported its fiscal year
2023 (FY23) results. According to the report, trading revenue fell 3% to
£941.8 million from £972.3 million. Subsequent reports from the end of October
indicated that <a href="https://www.financemagnates.com/forex/three-ig-group-subsidiaries-report-mixed-results-for-fiscal-year-2023/" target="_blank" rel="follow">individual subsidiaries of IG</a> also reported mixed results for
FY23.</p><p>IG Groups’ CEO Departs,
Company to Reduce 10% Staff Globally</p><p>In a recent
development, IG Group has announced a significant reduction in its workforce,
with plans to cut approximately 300 jobs, equating to <a href="https://www.financemagnates.com/forex/breaking-ig-group-to-reduce-10-staff-globally/" target="_blank" rel="follow">10% of its total
workforce</a> as reported at the end of FY23. This decision emerged from an
extensive review aimed at identifying cost-efficiency opportunities within the
company.</p><p>The
brokerage group is positioning itself to achieve substantial cost savings. It
projects a full run-rate cost savings of £50 million annually, with a phased
plan of realizing £10 million in FY24, £40 million in FY25, and reaching the full £50 million in FY26.</p><p>Adding to
the series of significant announcements, IG Group had previously reported in
August that its Chief Executive Officer (CEO), June Felix, <a href="https://www.financemagnates.com/executives/ceo-of-ig-group-june-felix-steps-down-due-to-ill-health/" target="_blank" rel="follow">had resigned with
immediate effect</a> due to health concerns. Her departure from the CEO role and as
a Director of the company followed <a href="https://www.financemagnates.com/institutional-forex/ig-group-cfo-temporarily-becomes-the-ceo/" target="_blank" rel="follow">a period of medical leave</a> that began in
early July. In the interim, Charlie Rozes, who serves as the Chief Financial
Officer, has stepped into the CEO position. </p>

This article was written by Damian Chmiel at www.financemagnates.com.