HSBC Launches $3 Billion Share Buy-Back Program

TL;DR

HSBC is buying back up to $3B in stock, starting now via Morgan Stanley.

AI Summary

HSBC Holdings plc announced on October 30, 2024, that it will begin a share buy-back program of up to $3,000,000,000 in ordinary shares. This program, outlined in a prior announcement on October 29, 2024, aims to reduce the number of outstanding shares. HSBC has entered into irrevocable agreements with Morgan Stanley & Co. International plc to facilitate these purchases.

Why It Matters

This significant share buy-back indicates HSBC's confidence in its financial position and its commitment to returning capital to shareholders, potentially boosting share value.

Risk Assessment

Risk Level: low — The filing is a routine announcement of a pre-planned share buy-back program, with no new negative financial information.

Key Numbers

• $3.0B — Share Buy-Back Program (Maximum amount HSBC will spend to repurchase its own shares.)

Key Players & Entities

• HSBC Holdings plc (company) — The company announcing the share buy-back.
• $3,000,000,000 (dollar_amount) — The maximum consideration for the share buy-back program.
• October 30, 2024 (date) — The date of the announcement and commencement of the buy-back.
• October 29, 2024 (date) — The date of the prior announcement outlining the buy-back.
• Morgan Stanley & Co. International plc (company) — The financial institution engaged for the share buy-back.

FAQ

Key Financial Figures

• $0.50 — buy-back of HSBC's ordinary shares of US$0.50 each (" Ordinary Shares ") for up to a
• $3,000,000,000 — for up to a maximum consideration of US$3,000,000,000 (three billion) (the " Buy-back "). The
• $3,099b — tries and territories. With assets of US$3,099bn at 30 September 2024, HSBC is one of t

Filing Documents

• a2449k.htm (6-K) — 18KB
• 0001654954-24-013465.txt ( ) — 19KB

From the Filing

HOLDINGS PLC - SHARE BUY-BACK a2449k FORM 6-K   SECURITIES AND EXCHANGE COMMISSION   Washington, D.C. 20549       Report of Foreign Private Issuer   Pursuant to Rule 13a - 16 or 15d - 16 of   the Securities Exchange Act of 1934       For the month of October   HSBC Holdings plc   42nd Floor, 8 Canada Square, London E14 5HQ, England   (Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F).   Form 20-F X Form 40-F       30 October 2024   HSBC HOLDINGS PLC SHARE BUY-BACK   HSBC Holdings plc (" HSBC ") announces that, as outlined in its announcement on 29 October 2024, it will commence a share buy-back of HSBC's ordinary shares of US$0.50 each (" Ordinary Shares ") for up to a maximum consideration of US$3,000,000,000 (three billion) (the " Buy-back "). The purpose of the Buy-back is to reduce HSBC's outstanding Ordinary Shares.   HSBC has entered into irrevocable, non-discretionary buy-back agreements with Morgan Stanley & Co. International plc (" Morgan Stanley ") to enable the purchase of Ordinary Shares by Morgan Stanley, acting as principal, during the period running from 31 October 2024 and ending no later than 14 February 2025 (subject to regulatory approval remaining in place), for an aggregate purchase price of up to US$3,000,000,000 (three billion) and the simultaneous on-sale of such Ordinary Shares by  Morgan Stanley  to HSBC.   Morgan Stanley will make trading decisions in relation to the Buy-back independently of HSBC. Any purchases of Ordinary Shares will be carried out on the London Stock Exchange, Aquis Exchange, Cboe Europe Limited (through the BXE and CXE order books) and/or Turquoise (together, the " UK Venues ") and/or The Stock Exchange of Hong Kong Limited (" Hong Kong Stock Exchange ").   The repurchases on the UK Venues will be implemented as "on Exchange" transactions (as such term is defined in the rules of the London Stock Exchange) and will be "market purchases" for the purposes of the Companies Act 2006. The repurchases on the Hong Kong Stock Exchange will be "off-market" for the purposes of the Companies Act 2006 but will be transactions which occur "on Exchange" for the purposes of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (" Hong Kong Listing Rules ") and which constitute an "on-market share buy-back" for the purposes of the Hong Kong Codes on Takeovers and Mergers and Share Buy-backs (" Hong Kong Buy-back Code ").   The repurchases will take place in accordance with certain pre-set parameters and in accordance with (and subject to limits prescribed by) HSBC's authority to make market purchases and off-market purchases of its Ordinary Shares, in each case granted by its shareholders at HSBC's annual general meeting on 3 May 2024 (the " 2024 Authority "), Chapter 9 of the Financial Conduct Authority's Listing Rules, Article 5(1) of the Market Abuse Regulation (EU) No 596/2014 (as it forms part of domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018, as amended (the " Withdrawal Act ")), the Commission Delegated Regulation (EU) No 2016/1052 (as it forms part of domestic law of the United Kingdom by virtue of the Withdrawal Act), the Hong Kong Listing Rules, the Hong Kong Buy-back Code and applicable US federal securities laws.   Ordinary Shares repurchased under the Buy-back will be cancelled.   The maximum number of Ordinary Shares that may be repurchased under the Buy-back is 1,216,830,835, being the number of Ordinary Shares able to be repurchased under the 2024 Authority as reduced by the number of Shares repurchased by the Company since the 2024 Authority was granted.   Investor enquiries to:   Neil Sankoff                              +44 (0) 20 7991 5072                  investorrelations@hsbc.com     Media enquiries to:   Gillian James                            +44 (0) 20 7992 0516                  gillian.james@hsbcib.com     Note to editors:   HSBC Holdings plc HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 60 countries and territories. With assets of US$3,099bn at 30 September 2024

View Full Filing

View this 6-K filing on SEC EDGAR