IBEX 35® companies reach record redemptions and halve their treasury shares
BME's Market Intelligence department published its annual report on Treasuy stock value in listed companies.
This report shows that, according to the audited accounts of the large Spanish exchange listed companies included in the IBEX 35® at the end of 2022, these companies reached record redemptions and halved their treasury stock. This was mainly due to the strong share redemption process throughout the year. Moreover, the data available for the first half of 2023 suggests that this trend will continue throughout the year.
The IBEX 35® companies that redeemed their own shares and ended the year with the lowest treasury stock were Repsol, BBVA, Telefónica, Laboratorios Rovi, Ferrovial, Iberdrola, ACS and Santander. Together they represent 76% of the total market value of the shares redeemed by the companies included in the index (10.8 billion euros).
On the other hand, the most significant annual increases in the value of treasury stock were achieved by companies in the metallurgical sector, such as Acerinox.
A share buyback consists of the company acquiring some of its shares, which are kept on the assets side of its balance sheet as treasury stock. However, they lose their voting rights and are not eligible to participate in profit. Share buybacks offer flexibility in modulating listed companies' shareholder remuneration policy.
Click here to read the full report (just available in Spanish).