Volex launches £40m buyback, confirms plans for Main Market move

(Sharecast News) - Volex launched a £40m share buyback programme and confirmed plans to transfer its listing from AIM to the Main Market of the London Stock Exchange on Tuesday, as the group stepped up capital returns and targeted broader investor participation. The company said the on-market buyback would purchase ordinary shares up to a total value of £40m, with all repurchased shares to be cancelled, reducing share capital and returning surplus funds to investors.

It said the programme would be executed by Peel Hunt under non-discretionary instructions, allowing purchases to continue during closed periods and when the company holds inside information.

The programme started immediately and would run until no later than 31 March 2027, subject to shareholder authorities.

Volex said the initiative followed regular board reviews of cash generation, capital requirements and allocation priorities, and is intended to balance shareholder returns with continued investment in the group's growth strategy.

Purchases would be made within regulatory limits, although daily volumes could exceed 25% of average trading volume, capped below 50%, reflecting the stock's limited liquidity.

The company currently has authority to repurchase up to 18,452,993 shares, equivalent to around 10% of its issued share capital of 185,097,534 shares.

Separately, Volex confirmed its intention to apply to the Financial Conduct Authority for admission of its shares to the equity shares (commercial companies) segment of the Official List and to trading on the Main Market of the London Stock Exchange.

The move followed consultation with major shareholders and builds on an earlier announcement in March.

Volex said it was targeting admission before 4 August, a deadline that would allow it to meet eligibility requirements for potential inclusion in FTSE Russell's September 2026 quarterly review of the FTSE 250 index.

Admission was subject to FCA approval of a prospectus and listing, as well as approval for trading on the Main Market, but was not conditional on shareholder approval.

On completion, Volex's shares will cease trading on AIM.

The company added that it would provide further updates on the admission process in due course, and reiterated plans to host a capital markets event for institutional investors and analysts on 22 April in London, where it would outline new medium-term growth targets.

At 1026 BST, shares in Volex were up 3.01% at 493.4p.

Reporting by Josh White for Sharecast.com.

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