Royal Bank of Canada (the Bank) (TSX: RY) (NYSE: RY) has announced today that both the Toronto Stock Exchange (TSX) and the Office of the Superintendent of Financial Institutions (OSFI) have given approval for its normal course issuer bid. This bid allows the Bank to repurchase, for cancellation, up to 30 million of its common shares.
The normal course issuer bid is scheduled to commence on June 12, 2024, and will remain active until June 11, 2025, or until the Bank completes its purchases as per the notice of intention filed with the TSX, whichever comes earlier. The shares may be acquired through the facilities of the TSX, the New York Stock Exchange (NYSE), and other designated exchanges and alternative Canadian trading systems. The purchase price for the shares will be based on prevailing market prices at the time of acquisition.
The maximum number of shares eligible for repurchase represents approximately 2.12% of the 1,415,074,558 common shares issued and outstanding as of May 31, 2024. Daily purchases on the TSX will not exceed 1,255,946 common shares, which equates to 25% of the average daily trading volume on the TSX over the six months ending May 31, 2024. During this period, the Bank’s average daily trading volume on the TSX was 5,023,785 shares.
Implementing the normal course issuer bid provides flexibility for managing the Bank’s capital position while creating shareholder value. An automatic share purchase plan will be initiated on June 12, 2024, in collaboration with the Bank’s broker, RBC Dominion Securities Inc. This plan allows periodic purchases of common shares under the bid based on predefined criteria, contingent upon future market conditions.
Cautionary Note Regarding Forward-Looking Statements:
This press release includes forward-looking statements within the meaning of certain securities laws, including provisions under the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. These statements reflect RBC’s beliefs, plans, expectations, and estimates regarding the normal course issuer bid. Forward-looking statements are identified by words such as “believe,” “expect,” “plan,” “anticipate,” “estimate,” “aim,” “target,” “project,” “forecast,” “outlook,” “could,” “would,” “should,” “may,” “might,” “will,” and similar expressions.
These forward-looking statements are subject to inherent risks and uncertainties, both general and specific, which could cause actual results to differ materially from expectations expressed in such statements. Factors that may cause actual results to differ include credit, market, liquidity, and funding risks; regulatory compliance and legal uncertainties; strategic, reputational, and operational risks; and geopolitical and environmental factors. Additional risks are detailed in RBC’s annual report for the fiscal year ended October 31, 2023, and the second-quarter 2024 report to shareholders.
The forward-looking statements contained in this press release are valid only as of the date of issuance. RBC undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
