1811 ET - Plumbing fittings supplier Reliance Worldwide's new A$120 million share buyback may only boost its EPS by some 2% to 3%, despite its share price hovering close to three-year lows. That's because the higher cost of bank debt appears to be relatively expensive, Citi says. Reliance says it will use cash reserves and borrowing facilities to fund the buyback, which is equivalent to 5% of shares on issue. "On timing, we think at top end of participation rates it's possible the buyback could complete in FY26," analyst Samuel Seow says. Still, Citi expects some shares will be repurchased in FY27. "And there is potential to top up another 5% with buyback rules if the share price is still attractive," Citi says. Reliance ended Monday at A$3.12. Its stock is down roughly 32% in the past 12 months. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

March 16, 2026 18:11 ET (22:11 GMT)

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