The airline holding IAG, parent company of Iberia, British Airways, Vueling, and Aer Lingus, has ruled out at its general shareholders' meeting carrying out a 'reverse stock split' or share consolidation, with the intention of keeping the share price "truly accessible" for small savers and its staff.
At the same time, the company has left the door open to extending share buyback programs over time without setting a maximum threshold in advance, always conditioned by market developments.
During the open forum, several minority shareholders raised the convenience of a 'reverse stock split' of two shares for one to increase the nominal value of the share, moderate volatility, and mitigate the dilution generated after the Covid-19 crisis, after which the number of shares in circulation remains above 4.6 billion.
The chairman of IAG, Javier Ferrán, rejected this possibility, emphasizing that, although from a financial point of view the operation is "neutral," the group has a much higher number of individual shareholders than other listed companies due to historical reasons linked to the privatization of Iberia, in addition to having 75,000 employees invited to become partners.
"Many of them, for an emotional reason, give a share to their children. A 'reverse stock split' would increase the nominal price and we believe that for the moment it is better to continue with this accessible value," defended the executive, who expects the share to continue advancing organically after having surpassed the threshold of five euros.
NO FIXED LIMIT FOR NEW SHARE REPURCHASES
In relation to the shareholder remuneration policy and the reduction of share capital, and following the current 500 million euro buyback plan, IAG's senior management has stressed that the company will maintain strict "discipline" in the use of available funds.
The group's roadmap prioritizes financing of activity and expansion projects, and, subsequently, shareholder remuneration through dividends. However, the chairman has clarified that, if cash surpluses are generated and the quotation is "attractive," new buyback programs will be launched later.
When asked directly whether there is a ceiling for these repurchases, Ferrán was clear: "The answer is no, we do not have a limit."
The board of directors has received the recognition of the partners for the improvement of the accounts, highlighting an increase of 56% in adjusted earnings per share and a reduction of 30% in net debt, which places the net debt to Ebitda ratio at 0.5 times (50%).
EVENTS FOR IBERIA'S CENTENARY IN 2027
On the other hand, the IAG leadership has advanced, in response to the attendees' questions, that the group is already working on the design of the program with which it will celebrate Iberia's Centenary in 2027.
"It will be a historic year for us, not only to celebrate, but to recognize the work of all those who have preceded us," said the chairman, specifying that the commemoration will not be limited to a single major event, but to "a series of events" spread throughout the twelve months of 2027, currently in the planning phase.
Once the intervention period concluded, the general meeting of shareholders proceeded to vote on the different items on the agenda, which were approved in their entirety. The assembly has supported the payment of a complementary dividend of 0.05 gross euros per share from the 2025 results, which will be paid on June 29, as well as a capital reduction of up to 10% through the amortization of 461.1 million shares from share buyback programs.
Likewise, the continuity of Luis Gallego and Javier Ferrán in their positions has been ratified, the entry of Daniel Pinto (JPMorgan Chase) as a new independent director replacing Nicola Shaw, and the renewal of financial authorizations to the board to be able to increase capital by up to 50% and issue convertible debt for a maximum amount of 1.5 billion euros.