London January 14 2025: In a recent 8-K filing with the Securities and Exchange Commission, IBEX Ltd (NASDAQ:IBEX), a company specializing in computer processing and data preparation services with annual revenue of $513.68M, announced the completion of a significant transaction involving the repurchase of its common shares.
On Monday, the company disclosed that it had fully paid off a convertible promissory note, originally issued as part of a share repurchase agreement. According to InvestingPro data, IBEX maintains a strong financial health score of “GREAT,” with a current ratio of 2.42 indicating robust liquidity.
The transaction dates back to November 19, 2024, when IBEX Ltd entered into a purchase agreement with The Resource Group International Limited (TRGI). Under this agreement, IBEX repurchased 3,562,341 of its common shares from TRGI for a total of $70 million. Payment was structured with $45 million in cash and the remainder through the issuance of the convertible promissory note valued at $25 million.
On Thursday of last week, IBEX Ltd settled the outstanding Seller Note using proceeds from its credit lines with HSBC (LON:HSBA) Bank USA, National Association, and HSBC Bank Middle East Limited. With this payment, the Seller Note was officially terminated according to its terms.
The repurchase comes at a time when companies are increasingly looking to optimize their capital structures and deliver value to shareholders. By buying back shares, IBEX Ltd effectively reduces the number of shares outstanding, potentially increasing the earnings per share and the intrinsic value of the remaining shares. InvestingPro analysis highlights that management has been aggressively buying back shares, with 11 additional key insights available to subscribers.
IBEX Ltd, which is incorporated in Bermuda and headquartered in Washington, D.C., has not disclosed any additional strategic intentions behind the share repurchase. The company’s stock is listed on the Nasdaq Global Market under the ticker symbol IBEX.
In other recent news, IBEX Ltd has reported significant developments. The company started the fiscal year 2025 with record Q1 revenue of $129.7 million, a 4.1% increase from the previous year. Adjusted EBITDA rose to $15.6 million, while adjusted EPS saw a 30% increase to $0.52. IBEX Ltd has consequently raised its full-year revenue guidance to between $515 million and $525 million, with adjusted EBITDA expected to reach $67 million to $69 million.
In a move that has altered its ownership structure, IBEX Ltd repurchased approximately 20% of its diluted shares from The Resource Group International, Limited. This has ended the company’s status as a “controlled company” under Nasdaq rules, and the board now consists of a majority of independent directors. In addition, shareholders approved several key proposals, including setting the board of directors’ size, electing directors, and appointing the company’s auditor for the upcoming fiscal year.
