Melrose Industries surged on Wednesday after the GKN owner announced the launch of a £500m share buyback following the agreed sale of its US division.
The programme, which will be launched on Thursday, will purchase no more than just over 437.2m shares and will end no later than 31 October.
Chief executive Simon Peckham said: “Having agreed the sale of Ergotron, we are now in a position to again distribute capital to our shareholders and have chosen the quickest way to start to achieve that goal.
“We will continue to keep under review the appropriate capital structure of Melrose as we position for continuing success.”
Melrose said on Monday that it had agreed to sell its Ergotron business to funds managed by The Sterling Group for around $650 million (£520m) in cash.
At 0835 BST, the shares were up 7.9% at 153.32p.
