UOS has continually raised money by issuing more shares through...

UOS has continually raised money by issuing more shares through its dividend re-investment scheme and does so at a discount to the VWAP. This is the one thing that has irked me as they have no need for this extra capital.

They have previously done a sizeable capital return as they did not require this money and have done on market buybacks as well. The buybacks are good for all shareholders as it increases the percentage of the company we own.

Now the only thing is that due to the illiquidity of the stock very few shares actually get bought back during these on-market buybacks and the number bought is completely overwhelmed by the number of shares that they issue through their DRP each year.

The only reason I can see for this DRP to occur at a discount is that it allows the management to slowly increase their shareholding at a discount.

If management have given a reason for having a DRP at a discount at the same time as having buybacks, I would be happy to hear or if people have other theories.