IG Group Holdings plc has unveiled plans to launch a new share buyback program worth up to £150m. As part of the initiative, the company has engaged Morgan Stanley & Co. International Plc to manage the first tranche, which is valued at £75m.

The main objective of the share buyback program is to reduce IG Group's share capital. The move is in line with the company's strategy to return value to shareholders and optimize its capital structure. The buyback program will commence on August 12, 2024 and is expected to be completed by October 31, 2024.

The first tranche of the program will operate under the authority granted by IG Group's shareholders at the company's Annual General Meeting on September 20, 2023. Under the terms and conditions set at that meeting, the maximum number of shares available for purchase in this initial tranche is 19,990,397. The repurchase will be carried out in accordance with the relevant market rules and within the parameters established by the authorization of the Board of Directors.

This strategic move by IG Group follows the trend among public companies to buy back shares as a way to increase shareholder value. By reducing the number of shares outstanding, the company aims to increase earnings per share (EPS) for the remaining shareholders and potentially increase the share price.

The decision to implement this buyback program reflects IG Group's confidence in its financial health and future prospects. It also underscores the company's commitment to creating value for its shareholders through both return on capital and operational efficiency.

As the program develops, IG Group will provide updates on the progress of the program and any further steps in the buyback initiative.

This share repurchase program is part of IG Group's broader strategy to enhance shareholder returns and reflects its proactive approach to effectively managing its capital base. The market will be watching with interest to see how this initiative affects investor sentiment and the company's share performance in the coming months.