SÃO PAULO - XP Inc. (NASDAQ:XP), a prominent financial services platform in Brazil, has announced the initiation of a new share repurchase program. The program, approved by the company's board of directors, is designed to mitigate potential shareholder dilution resulting from the vesting of Restricted Stock Units (RSUs) associated with the company's long-term incentive plan.
Starting February 28, 2024, XP Inc. is authorized to repurchase up to 2.5 million Class A Common Shares and will conclude this activity by December 27, 2024. The repurchases are to be conducted either in the open market, depending on the prevailing market prices, or through privately negotiated transactions, based on market conditions.
The board has granted the management team permission to engage a broker to facilitate the repurchase of shares on the open market. These transactions are expected to be protected under the safe harbor provisions of Rule 10b-18 and/or Rule 10b5-1, established by the Securities and Exchange Commission.
Funded by its existing cash reserves, the repurchase program is a part of XP Inc.'s strategy to manage capital allocation effectively.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.