iOCO, formerly known as EOH, has continued to return capital to shareholders after repurchasing a further 2.34 million shares in the open market.
In a notice to shareholders, the JSE-listed IT services group said it repurchased 2 344 669 ordinary shares between 29 November 2025 and 31 December 2025.
The shares were bought at prices ranging between 398 cents and 400 cents per share, for a total consideration of R9.38 million, excluding transaction costs.
In its latest annual financial results published in October, iOCO showed a significant swing back to profit with earnings per share of 40 cents, compared to a loss the previous year, driven by strategic restructuring and cost management.
Key highlights included an operating profit of R421 million and profit attributable to owners of R250.8 million, with no dividends declared.
“This year is a turning point as we move to sustainable profitability and focused delivery,” co-CEO Rhys Summerton said at the time.
Brand repositioning
The latest repurchase forms part of iOCO’s broader capital management programme and follows the company’s rebrand from EOH, as it seeks to reposition itself as a focused digital services and technology partner.
Share buybacks typically reduce the number of shares in issue, which can enhance earnings per share and signal management’s view that the stock is undervalued.
iOCO has, in recent years, worked to stabilise its balance sheet, streamline operations and rebuild investor confidence after a period of governance and financial challenges under the EOH name.
The continued repurchasing of shares suggests the group believes it has sufficient liquidity to fund operations while returning value to shareholders.
Since 1 August 2025, iOCO says it has cumulatively repurchased 4 292 027 shares, representing approximately 0.7% of the company’s issued share capital.
According to the firm, the repurchased shares are held as treasury shares. Following the repurchase, 6 378 634 shares are currently held as treasury shares.
Says the company in a statement: “The board has evaluated the impact of the repurchase and is of the view that proceeding with it is in the best interests of the company, while ensuring sufficient financial flexibility to deliver on its future strategic objectives and capital allocation priorities. “
The iOCO board is of the view that for the 12 months following the date of this announcement, the company and the group will be able to meet their obligations in the ordinary course of business.
It believes the assets of the company and the group will exceed their liabilities, with both recognised and measured in line with the accounting policies applied in the latest audited annual group financial statements.
The board further believes that the share capital, reserves and working capital of the company and the group will be sufficient for ordinary business requirements, and that both have satisfied the solvency and liquidity test, with no material changes to their financial position.
Following the repurchase, the company notes that the extent of the general authority granted by shareholders at the annual general meeting held on 3 December to repurchase shares outstanding is 123 323 222 ordinary shares, representing 19.6% of the total issued share capital of iOCO at the time the authority was granted.
Order book execution
The repurchase was executed through the order book of the JSE, without any prior understanding or arrangement between the company and the counterparties.
It was funded from the group’s available cash resources, with cash balances decreasing by R9 378 676 as a result of the repurchase, the company explains.
iOCO rebranded from EOH last December as it sought to reinvent itself after a 2019 ENSafrica investigation revealed governance failings and wrongdoing. The probe found around R1.2 billion worth of suspicious transactions at EOH, which mostly involved transactions within public sector contracts.
Over the past two years, iOCO has streamlined its products and services, while sharpening its market focus. iOCO sold eight legacy companies – all inherited from EOH – between November 2023 and July 2024.
The disposals were completed at a net loss, according to its 2024 annual financial statements.
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