FirstService Corporation Launches New Normal Course Issuer Bid
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FirstService Corporation Initiates Normal Course Issuer Bid
FirstService Corporation (TSX and NASDAQ: FSV) has recently announced that the Toronto Stock Exchange (TSX) has accepted its notice for a normal course issuer bid (NCIB) concerning its outstanding common shares. This bid highlights FirstService's commitment to enhancing shareholder value through strategic purchasing of its shares in the open market.
Details of the NCIB Announcement
The normal course issuer bid will commence on August 26 and will conclude on August 25 of the following year. Under this bid, FirstService aims to buy up to 1,600,000 common shares, which constitutes approximately 4.0% of the public float of its common shares as of a recently noted date. The acquisition price will be determined based on the market price at the time of purchase, emphasizing the company's strategy to optimize shareholder wealth. Senior management will oversee the timing and quantity of shares purchased throughout the duration of this bid.
Volume and Purchase Limits
Over the defined period of this NCIB, FirstService has established that daily purchases will be limited to 18,027 common shares, excluding bulk purchases. This limitation ensures that the company remains within trading norms while executing its share buyback strategy effectively.
Common Shares Outstanding
As of the specified date, FirstService had 45,016,289 common shares outstanding, with a notable public float of 39,900,306 shares. This backdrop illustrates the size and potential of FirstService as a publicly traded entity on the stock exchange.
Strategic Reasons for Share Buyback
FirstService's decision to buy back its common shares is driven by the belief that the current market price is favorable. Furthermore, purchasing shares may serve to mitigate the dilutive effects of stock options that are a part of its compensation strategy. This buyback program demonstrates the board's confidence in the company’s financial health and operational performance.
Previous Normal Course Issuer Bid
Earlier, FirstService sought and secured approval to conduct a NCIB which allowed the company to purchase an equal number of common shares. However, by the marked date, the company had not engaged in any share buyback activities. The completion of this previous NCIB is scheduled imminently, prompting the announcement of the new bid.
Overview of FirstService Corporation
FirstService Corporation is recognized as a leader in the North American outsourced property services sector. It operates under two principal service platforms: FirstService Residential, which is the largest manager of residential communities in North America, and FirstService Brands, a major provider of essential property services delivered through both branded operations and franchised systems.
Financial Performance and Growth
The corporation reports impressive annual revenues exceeding US$4.6 billion and employs approximately 30,000 individuals across North America. FirstService Corporation boasts significant insider ownership and a skilled management team that has consistently shown competence in creating long-term shareholder value and delivering superior financial returns. The shares of FirstService are traded on both NASDAQ and the Toronto Stock Exchange under the ticker symbol “FSV”, making them a substantial component of the S&P/TSX 60 index.
Company Contact Information
For further inquiries regarding FirstService Corporation, please reach out to the company contacts listed below:
D. Scott Patterson
Chief Executive Officer
(416) 960-9566
Jeremy Rakusin
Chief Financial Officer
(416) 960-9566
Frequently Asked Questions
What is a normal course issuer bid (NCIB)?
A normal course issuer bid (NCIB) allows a company to repurchase its own shares from the marketplace in order to reduce the number of outstanding shares, thereby potentially increasing the value for remaining shareholders.
How many common shares does FirstService intend to purchase?
FirstService Corporation plans to purchase up to 1,600,000 common shares during the course of its normal course issuer bid.
What is the purpose of FirstService's share buyback program?
The share buyback program is intended to enhance shareholder value, mitigate the effects of stock options, and reflect management's confidence in the market price of the company's shares.
Has FirstService conducted any share buybacks previously?
Yes, in the previous NCIB, FirstService was permitted to purchase an equal number of common shares but did not do so before the designated expiry date.
Where can I find more information about FirstService Corporation?
For more information about FirstService Corporation, visit their corporate website or contact their company representatives directly at the provided phone numbers.
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