Coveo Solutions Inc., a leader in AI-driven search and generative experiences, announced on July 15, 2025, that the Toronto Stock Exchange (TSX) has approved the renewal of its Normal Course Issuer Bid (NCIB). This renewal allows Coveo to purchase and cancel up to 5,423,244 subordinate voting shares, representing approximately 10% of its public float as of July 4, 2025, from July 17, 2025, to July 16, 2026. The company also renewed its Automatic Securities Purchase Plan (ASPP) to facilitate share purchases during regulatory or blackout periods.
NCIB Renewal: Coveo authorized to repurchase up to 5,423,244 shares (10% of public float) from July 17, 2025, to July 16, 2026.
TSX Approval: Received for NCIB and ASPP, ensuring compliance with regulations.
Previous NCIB: Fully utilized, repurchasing 2,690,573 shares at C$6.43 average price from July 17, 2024, to July 16, 2025.
Purchase Limits: Daily limit of 33,606 shares on TSX; weekly block purchases allowed.
Purpose: Enhance shareholder value and provide liquidity to selling shareholders.
Stock Context: 55,730,805 shares outstanding, 54,232,443 in public float as of July 4, 2025.
Coveo’s board of directors, with TSX approval, authorized the NCIB renewal to purchase up to 5,423,244 subordinate voting shares, approximately 10% of the public float of 54,232,443 shares as of July 4, 2025. This follows the completion of the previous NCIB, which expired on July 16, 2025, during which Coveo repurchased the full 2,690,573 shares authorized at a weighted average price of C$6.43 per share through open market purchases on the TSX and Canadian alternative trading systems. The new NCIB will run from July 17, 2025, to July 16, 2026, with purchases conducted at market prices via open market transactions, privately negotiated transactions, or other permitted methods, subject to TSX regulations. Purchases under issuer bid exemption orders will be at a discount to the prevailing market price.
Coveo renewed its ASPP with a designated broker to enable share repurchases during regulatory restrictions or internal blackout periods. The broker will execute purchases based on pre-set parameters, with a daily limit of 33,606 shares (25% of the average daily trading volume from January 1, 2025, to June 30, 2025). Coveo may also make one weekly block purchase exceeding this limit, excluding insider shareholders holding over 10% of shares, per TSX rules. The ASPP ensures compliance with Canadian securities laws, allowing Coveo to maintain its repurchase strategy during restricted periods.
Coveo’s management and board believe the market price of its shares may not always reflect their underlying value, making the NCIB a strategic capital allocation tool to enhance shareholder value by increasing each shareholder’s equity interest. The program also provides liquidity to selling shareholders. The actual number of shares repurchased, timing, and price will depend on factors like Coveo’s capital position, operational performance, and market conditions. The company views the NCIB as part of its commitment to long-term shareholder value creation.
Coveo’s stock (TSX: CVO) has shown resilience, with posts on X noting its attractive valuation despite revenue challenges, highlighting its AI-driven enterprise search solutions as a growth driver. The company recently completed a Substantial Issuer Bid (SIB) in July 2024, repurchasing 6,493,506 shares at C$7.70 each, totaling C$50 million, demonstrating its active capital return strategy.
Coveo’s NCIB renewal and ASPP underscore its focus on optimizing capital structure while advancing its AI-Relevance platform, positioning the company to deliver personalized digital experiences and drive business outcomes for its clients.
Coveo brings superior AI-Relevance to every point-of-experience, transforming how enterprises connect with their customers and employees to maximize business outcomes. Relevance is about moving from persona to person, the degree to which the enterprise-wide content, products, recommendations, and advice presented to a person online aligns easily with their context, needs, preferences, behavior and intent, setting the competitive experience gold standard. Every person's journey is unique, and only AI can solve the complexity of tailoring experiences across massive, diverse audiences and large volumes and variety of content and products.
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