Bombardier - Executive Advisor, Christophe Degoumois
Executive Advisor, Christophe Degoumois
Source: Bombardier.
  • Aviation stock Bombardier (TSX:BBD.A) confirmed that its new normal course issuer bid will begin on Wednesday
  • The TSX has approved purchases to April 2, 2025, up to 1.75 million of its Class B shares under the new NCIB, representing 2.05 per cent of the 85.3 million Class B shares held in the trust account
  • Bombardier stated that it retains discretion as to whether purchases should be made under the new NCIB. Transactions under the new NCIB will depend on future market conditions
  • Bombardier stock (TSX:BBD.A) opened trading at C$57.95 per share

Aviation stock Bombardier (TSX:BBD.A) confirmed that its new normal course issuer bid (NCIB) will begin on Wednesday.

After the early termination of its current normal course issuer bid, the TSX has approved purchases to April 2, 2025, up to 1.75 million of its Class B shares under the new NCIB, representing 2.05 per cent of the 85.3 million Class B shares held in the trust account as of March 21, 2024.

In a news release, Bombardier stated that it retains discretion as to whether purchases should be made under the new NCIB. Transactions under the new NCIB will depend on future market conditions.

A maximum of 5 per cent of the Canadian business jet manufacturer’s issued and outstanding shares may be purchased over a 12-month period under an NCIB.

All Class B shares purchased under the new NCIB will either be cancelled outright, used to settle the company’s obligations under its employee share-based incentive plans, or cancelled to manage its capital position.

A strategy used by publicly traded companies to purchase their own shares from the open market, the intent of an NCIB is to reduce the number of outstanding shares, potentially increasing metrics such as earnings per share and boosting the market value.

Companies can initiate an NCIB if its shares are undervalued, and repurchasing shares can reduce the number of shares in the market that investors can purchase.

Based in Montreal, Bombardier designs, manufactures and services business jets. The company has a global fleet of approximately 5,000 aircraft in service across multinational corporations, charter and fractional ownership providers, governments and private individuals.

Bombardier stock (TSX:BBD.A) opened trading at C$57.95 per share and is down 15.68 per cent since this time last year, but it has risen 2,186.77 per cent since 2019.

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