Pepco Group's equity climbed 3.2% today following a board decision to withdraw an earlier share buyback invitation and replace it with a higher-priced tender. The original July 14 offer, set at 41.76 PLN per share, was canceled and supplanted by a new invitation priced at 47.52 PLN per share - a level that equates to roughly a 14% premium to the prior day’s close.
The aggregate budget for capital returns remains unchanged, limited to a maximum of 400 million euros. Shares repurchased under the revised program are designated for cancellation, a structure that, all else equal, directly increases the ownership stake of remaining shareholders and therefore has an accretive effect.
The refreshed tender establishes a clear valuation anchor for the market by setting an elevated purchase price for sellers - effectively serving as a floor and signaling strong board conviction in the buyback. The program can cover up to 49,083,414 shares, which corresponds to 8.5% of Pepco’s share capital. Separately, the majority shareholder, IBEX Retail Investments, had already stated its plan to tender its entire holding of about 360 million shares, a large-scale commitment that reinforces the program’s depth and seriousness.
Following the announcement, Pepco (PCOP) reached a new 52-week high of 46.34 PLN, marking a substantial rebound from its 52-week low of 19.85 PLN. Market participants cited the higher tender price and the size of the planned capital return as primary catalysts for the rally.
At the same time, the broader trading backdrop in Poland has been constructive. The Warsaw Stock Exchange has seen positive momentum, with the WIG30 benchmark recently achieving record highs - an environment that provides a favorable context for domestic equity moves. Global markets presented a more mixed picture, with U.S. indices diverging: the Dow Jones edged up while the Nasdaq eased. That split left Pepco's local corporate action as the dominant driver of today’s price movement.
In summary, the combination of a materially higher buyback price, a concentrated and sizable repurchase envelope, and a generally supportive Polish market setting has pushed Pepco shares to their loftiest level in over three years, with the revised tender standing out as the decisive proximate trigger for the uptick.