EQB Gets Green Light for Major Stock Buyback Program; Here's What It Means

EQB (EQB.TO) has secured approval from the Toronto Stock Exchange to execute an aggressive share repurchase initiative over the next 12 months, marking a significant move in the company’s capital allocation strategy. The authorization spans from January 6, 2026, to January 5, 2027, allowing management to systematically acquire shares from the open market.

The Scale of the Buyback Initiative

Under this Normal Course Issuer Bid, the company can purchase up to 2.22 million common shares—roughly 10% of its public float based on the December 23, 2025, baseline. Daily transactions will typically be limited to 31,372 shares, though block purchase exceptions through the TSX may apply. Every share acquired through this buyback list will be permanently cancelled, effectively reducing the company’s outstanding share count.

Blackout Period Flexibility Added

Beyond the standard repurchase mechanism, EQB has also obtained authorization to establish an Automatic Securities Purchase Plan with its broker. This provision enables the company to continue buybacks even during blackout periods and trading windows where executives typically face restrictions. The automated system will operate within preset guidelines and full regulatory compliance.

Why Management Is Buying Back Stock

The board’s rationale is straightforward: current market valuation doesn’t fully capture the company’s intrinsic worth. By repurchasing shares at existing prices, management believes it’s deploying capital more efficiently than alternative uses. This buyback strategy suggests confidence in long-term value creation.

Track Record From Previous Program

The prior buyback initiative delivered tangible results. EQB repurchased approximately 1.42 million shares at an average price near $94.37 per share, totaling roughly $134.5 million in capital deployed. That previous program demonstrates management’s commitment to this capital allocation approach.

Current Market Position

As of December 23, 2025, EQB maintained approximately 37.3 million shares outstanding, with 22.2 million shares comprising the public float. The stock was trading at $104.42 on the TSX, up 0.51% on the announcement, reflecting investor sentiment toward the buyback renewal.

The share repurchase authorization essentially places EQB on a structured buying list, allowing disciplined capital returns while market conditions permit. For shareholders, reduced share counts can contribute to earnings-per-share accretion if profitability remains stable.