TORONTO, Oct. 28, 2013 /CNW/ - Royal Bank of Canada (TSX: RY) (NYSE: RY) today announced that the Toronto Stock Exchange has approved its normal course issuer bid to purchase, for cancellation, up to 30 million of its common shares.
The shares that may be repurchased represent approximately 2.1 per cent of the bank's outstanding common shares. As of October 18, 2013 there were 1,440,955,597 common shares of the bank outstanding.
Purchases under the normal course issuer bid may commence on November 1, 2013 and continue until October 31, 2014, when the bid expires. Purchases may be made through the Toronto Stock Exchange, the New York Stock Exchange and other designated exchanges and published markets in both Canada and the U.S. The price paid for any repurchased shares will be the prevailing market price at the time of acquisition.
The bank will only initiate purchases under the bid after consulting with the Office of the Superintendent of Financial Institutions (OSFI). The amount of purchases on any given day will not exceed 611,400 common shares, which is 25 per cent of the average daily trading volume on the Toronto Stock Exchange for the six months ending September 30, 2013. The average daily trading volume of the bank's shares on the Toronto Stock Exchange for that six-month period, calculated in accordance with the rules of the Toronto Stock Exchange for the purposes of the bid, was 2,445,706 shares.The purchase of common shares under the normal course issuer bid will enable the bank to balance the imperatives of maintaining strong capital ratios with the ongoing need to generate shareholder value.