Company ups the ante with buyback program
EQB Inc. (TSX: EQB) has announced the renewal and expansion of its normal course issuer bid (NCIB), allowing the company to repurchase and cancel up to 2.3 million common shares, equivalent to approximately 8.4% of its public float. The renewed program received approval from the Toronto Stock Exchange (TSX) and will run from January 6, 2025, to January 5, 2026.
Under the NCIB, repurchases will occur through the TSX and alternative Canadian trading systems. The timing and volume of purchases will be at the company’s discretion, influenced by market conditions and other factors. All acquired shares will be cancelled upon repurchase.
According to a news release, the company’s board of directors supports the initiative, citing the potential for share repurchases to represent an effective use of corporate funds under certain market conditions. While the NCIB allows for significant flexibility, the company emphasized that it is under no obligation to complete the full repurchase and may adjust or suspend the program as needed.
During its previous NCIB, EQB repurchased 14,000 common shares at an average price of $97.98 per share, amounting to a total of approximately $1.37 million. No preferred shares were purchased under the prior program, which had set limits for both common and preferred shares.
As of December 23, 2024, EQB reported 38,448,950 common shares issued and outstanding, with a public float of 27,330,184 shares.
EQB Inc. is a financial services company offering banking and wealth management services through its subsidiaries. It manages $127 billion in combined assets as of October 31, 2024, and serves a broad customer base across Canada.
EQB achieved record profitability in 2024, surpassing $1 billion in annual revenue. Key drivers included 9% loan growth, a 28% rise in EQ Bank accounts, and a 14% increase in assets under management, reaching $127 billion. EQB faced Q4 credit loss pressures but implemented risk mitigation strategies.
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