Wise starts £405 million share buyback, but the 40-60 split matters

Wise Group has formally started a share buyback programme worth up to £405 million, equivalent to approximately $540 million.

The headline number is sizeable, but investors should look closely at how the repurchased shares will be used. Around 40% will be transferred to Wise's Employee Share Trust to satisfy employee equity awards, while the remaining 60% will be held in treasury.

This means the programme is not purely about shrinking the number of shares associated with existing investors. A meaningful portion will support employee remuneration, potentially offsetting dilution that might otherwise arise when share awards are settled.

It is also worth noting that the programme is not a fresh strategic surprise. Wise originally announced it on 26 June 2026. This latest RNS confirms that purchases have begun and provides more detail about the mechanics.

Wise's buyback at a glance

Detail	Disclosure
Maximum consideration	£405 million
Approximate US dollar value	$540 million
Maximum shares under existing authority	102,500,025 Class A ordinary shares
Allocation to Employee Share Trust	Approximately 40% of repurchased shares
Allocation to treasury	Approximately 60% of repurchased shares
Start date	21 July 2026
Expected completion	No later than 31 March 2027
Broker	Goldman Sachs International

The £405 million figure is a maximum rather than a guaranteed final spend. Similarly, the 102,500,025-share limit reflects the number remaining under Wise's existing shareholder authority, rather than a commitment to purchase that full amount.

The eventual number of shares acquired will depend on factors including Wise's share price while the programme is running. The RNS does not disclose a minimum purchase amount or target average price.

What happens to the shares?

Wise says the buyback has two purposes: reducing its share capital and meeting obligations arising from employee share schemes and other equity awards.

Approximately 40% of the shares bought will be transferred to the Employee Share Trust. This trust holds shares used to settle awards made to employees.

For investors, that distinction matters. Using repurchased shares for employee awards can reduce the need to issue new shares for those schemes, helping to limit dilution. However, those shares may ultimately return to circulation when awards are satisfied, so this portion should not be viewed in quite the same way as shares permanently removed from the market.

The remaining 60% will be held in treasury. Treasury shares are shares that a company has repurchased and continues to hold itself. Wise has not said in this announcement whether or when those shares might be cancelled, reissued or used for another purpose.

That makes this a more nuanced buyback than the headline figure alone suggests. The full £405 million represents cash potentially committed to repurchases, but the long-term effect on the share count will depend on how the treasury shares are ultimately treated and how many shares are used to meet employee awards.

How the programme will operate

Wise has entered into non-discretionary arrangements with Goldman Sachs International. The broker will make trading decisions independently of Wise, subject to pre-set parameters.

This structure allows purchases to continue without Wise making individual day-to-day trading decisions. The programme is intended to comply with relevant US and UK market rules, including pricing and volume restrictions.

Purchases may take place across several venues:

• Nasdaq and other applicable US trading venues
• The London Stock Exchange
• CBOE Europe Limited
• Aquis

The programme started on 21 July 2026 and is expected to finish no later than 31 March 2027.

Wise will announce purchases as required under applicable laws and regulations. Investors should therefore receive periodic updates showing how much of the authority has been used.

Shareholder approval is still important

The existing authority was granted through a shareholder resolution passed on 29 April 2026. It allows Wise to purchase or commit to purchase up to 102,500,025 additional Class A ordinary shares under the programme.

However, that authority expires at the earlier of two points:

• The close of business on 30 September 2026
• The conclusion of Wise's next Annual General Meeting

Wise plans to seek renewed shareholder authority at its 2026 Annual General Meeting so that the programme can continue.

This creates a procedural dependency. The programme is scheduled to run until March 2027, but the current authority will expire much sooner. Continued purchases after that point will require shareholders to approve a new authority.

The RNS does not disclose the date of the Annual General Meeting or what would happen to the unused portion of the programme if renewed authority were not granted.

Why the announcement could be positive

The most obvious positive is the scale of the potential capital deployment. A programme of up to £405 million is a meaningful commitment to repurchasing shares.

Buybacks can support per-share measures when they reduce the effective number of shares outstanding. They can also provide an additional source of demand for shares while purchases are taking place, although there is no guarantee of any particular impact on the market price.

The employee-related portion may also help contain dilution from equity awards. Instead of issuing entirely new shares to meet those obligations, Wise can use shares acquired through the programme.

The use of an independent broker and pre-set parameters provides a clear framework for execution across Wise's US and European trading venues.

What investors should treat cautiously

This announcement does not provide any new trading figures, profit guidance or operational outlook. It confirms the launch of a programme that had already been announced in June.

Investors also need to distinguish between the maximum authorised amounts and what will actually happen. Wise may spend up to £405 million and purchase up to 102,500,025 shares under its existing authority, but the final spend and share count are not disclosed.

The allocation to employee awards also means around 40% of repurchased shares are earmarked for remuneration obligations rather than being held in treasury. That reduces the programme's direct share-count benefit compared with a buyback in which every acquired share is permanently cancelled.

Finally, the RNS does not disclose the programme's expected effect on earnings per share, cash reserves or other investment plans. There is therefore not enough information in this announcement alone to assess the broader opportunity cost of deploying up to £405 million in this way.

The next updates will show the real pace of buying

The launch confirms that Wise is now putting its previously announced buyback into action. The programme is large, structured and scheduled to run until no later than 31 March 2027.

For shareholders, the key detail is the split: approximately 40% of repurchased shares will support employee equity awards, with 60% held in treasury. That still has the potential to reduce dilution and improve per-share outcomes, but it is not the same as cancelling every share acquired.

The next things to watch are the regular purchase announcements, the amount spent, the number and average price of shares acquired, and the renewal of buyback authority at the 2026 Annual General Meeting. Those disclosures will determine how much of the headline £405 million programme is ultimately completed.