A buy back involves the company using cash on hand to purchase shares, in this case on-market but only through the UK exchange, and then cancelling the shares they purchase.
I haven't done the calculation for RIO but for example...if a company has say 1 million shares and it buys back 20% it will then have 800,000 shares available for trade.
Assuming the market conditions for the company and it's value remains the same the share price should increase in value buy 1.25 times or 25%.
Hope that helps.
Dreamcatcher
A buy back involves the company using cash on hand to purchase...
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Last
$112.81 |
Change
-1.620(1.42%) |
Mkt cap ! $41.87B | |||
| Open | High | Low | Value | Volume |
| $114.38 | $114.42 | $112.81 | $158.9M | 1.401M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 2408 | $112.81 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $112.85 | 6700 | 1 |
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| Last trade - 16.10pm 25/07/2024 (20 minute delay) ? |
| RIO (ASX) Chart |