IG Group (LON: IGG) has successfully completed a capital reduction, unlocking over £425 million in reserves. This strategic move, approved by both shareholders and the UK High Court, enhances the broker’s financial flexibility without altering its share structure.
The capital release was achieved by:
- Cancelling a newly created class of deferred shares to free up £300 million from the merger reserve.
- Reducing the share premium account by £125.7 million.
- Trimming the capital redemption reserve by £3,501.
These adjustments convert previously restricted reserves into distributable profits, enabling IG to pursue larger dividends, share buybacks, or potential acquisitions. The company is currently running a £200 million share buyback programme, expected to conclude next month.
This financial manoeuvre follows IG’s recent £160 million acquisition of Freetrade and comes as the firm anticipates FY25 results to meet or exceed market expectations, driven by heightened trading activity amid market volatility.
Founded in 1974 as IG Index, IG Group Holdings plc has grown from a niche gold speculation firm into one of the world’s leading online trading providers. Headquartered in London and listed on the London Stock Exchange (LSE: IGG), IG is a constituent of the FTSE 250 and serves over 300,000 clients across 19 countries.
At its core, IG offers access to more than 19,000 financial markets, including forex, indices, equities, commodities, and cryptocurrencies. Its product suite spans contracts for difference (CFDs), spread betting, options, and traditional stockbroking. Through platforms like tastytrade in the U.S. and Spectrum Markets in Europe, IG caters to both retail and professional traders with a focus on speed, transparency, and education.
The company’s growth has been fueled by strategic acquisitions, including the $1 billion purchase of tastytrade in 2021 and the £160 million acquisition of Freetrade in 2025. These moves have expanded IG’s reach into the U.S. and broadened its investment offerings, positioning it as a serious contender in the global retail investing space.
In 2025, IG completed a capital restructuring that unlocked over £425 million in reserves, enhancing its ability to return capital to shareholders and pursue further M&A opportunities. This followed a £200 million share buyback programme and a consistent dividend policy, underscoring its strong balance sheet and cash-generative model.
Despite its success, IG has faced challenges. Regulatory scrutiny, platform outages during high-volume periods, and legal disputes over client losses have tested its resilience. However, the firm has responded with improved risk controls, platform upgrades, and a renewed focus on client transparency.
IG’s ESG strategy, branded “Brighter Future,” reflects its commitment to ethical operations, environmental responsibility, and community empowerment. It includes initiatives like educational funding and diversity-focused hiring, aligning the company’s long-term goals with broader societal impact.
With a market cap of approximately £3.4 billion and a reputation for innovation, IG Group continues to shape the future of online trading — blending fintech agility with institutional-grade infrastructure.
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