Prudential commences third tranche of US$2 billion share buyback scheme

Asia-focused insurer Prudential on Tuesday (Jul 1) announced the commencement of the third and final tranche of its US$2 billion share buyback programme launched in June 2024.

This latest US$500 million tranche follows the completions of a first US$700 million tranche in November 2024 and a second US$800 million tranche in June 2025.

It is part of a share buyback programme to reduce Prudential’s issued share capital and return capital to its shareholders, which its directors consider to be “in the best interests of the company and of its shareholders”, the insurer said.

A maximum of 150 million shares may be repurchased under the tranche, over a period starting from Jul 1 and ending no later than Dec 24, 2025.

The insurer said that Merrill Lynch International has been appointed to conduct the share buybacks on its behalf.

The investment management company will make trading decisions independently of the insurer and will repurchase its ordinary shares on the London Stock Exchange or other trading venues, which Prudential will subsequently purchase.

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The insurer has dual primary listings on the Hong Kong stock exchange, where it is a constituent of the Hang Seng Composite Index, and the London Stock Exchange, as well as a secondary listing on the Singapore Exchange (SGX). It is also listed on the New York Stock Exchange in the form of American depositary receipts.

Prudential said that any purchases it makes will be treated as having been made on the London Stock Exchange. It added that no purchases of ordinary shares will be conducted on the Hong Kong stock exchange, nor will any purchases be made in respect of its American depositary receipts.

The insurer noted that it intends to cancel repurchased shares, but added that there is “no guarantee” that the third tranche will be implemented in full or that it will purchase any ordinary shares.

It stated that it would provide an update on its capital management plan in August, when it publishes its half-year results for the six months ended Jun 30, 2025.

On the SGX, shares of Prudential were trading at US$9.61 as at 4.01pm on Tuesday, unchanged from its closing price on Monday.