Coveo Solutions Inc. Launches Share Repurchase Program to Enhance Shareholder Value
- Coveo Solutions Inc. renews share repurchase program, allowing buyback of up to 5,423,244 subordinate voting shares.
- The initiative aims to enhance shareholder value and reflects the board's belief in the shares' underlying value.
- The program, effective until July 16, 2026, allows purchases during regulatory black-out periods, supporting capital management strategies.
Coveo Solutions Inc. Reinforces Commitment to Shareholder Value Through Share Repurchase Program
Coveo Solutions Inc. announces the renewal of its normal course issuer bid (NCIB) and automatic securities purchase plan (ASPP), effective July 15, 2025. This initiative allows the company to repurchase up to 5,423,244 subordinate voting shares, approximately 10% of its public float as of July 4, 2025. The Toronto Stock Exchange has approved this buyback program, following the completion of a previous NCIB, which successfully repurchased 2,690,573 shares at a weighted average price of C$6.43. The renewal underscores Coveo's strategic approach to enhancing shareholder value while optimizing its capital structure.
Under the new NCIB, Coveo plans to conduct its share repurchases through the TSX and alternative Canadian trading systems, ensuring compliance with regulatory requirements. The program permits block purchases, allowing the company to buy back up to 33,606 shares daily. The board of directors believes that the current market price does not adequately reflect the underlying value of the shares, and the repurchase initiative aims to increase the equity interest of remaining shareholders. Ultimately, this move aligns with Coveo's broader goal of fostering long-term growth and stability within the company.
The share repurchase program is set to conclude on July 16, 2026, providing a one-year timeframe for execution. With 55,730,805 common shares outstanding, the buyback represents a significant reduction in the total issued share capital. Coveo's commitment to returning capital to shareholders, coupled with the potential to strengthen its financial position, reflects its ongoing efforts to invest in future opportunities while maintaining shareholder confidence.
In addition to the NCIB, the renewal of the ASPP enables Coveo to continue purchasing shares during regulatory black-out periods, further supporting its repurchase strategy. The actual number of shares bought back will depend on financial performance and market dynamics, but the initiative is expected to enhance both the company's equity structure and overall market perception.
Coveo’s proactive measures highlight its dedication to maximizing shareholder value and maintaining a sustainable growth trajectory. As the company navigates the evolving landscape of technology solutions, its focus on strategic capital management positions it well for future opportunities in the industry.