Dollarama Secures Renewal of Normal Course Issuer Bid to Enhance Shareholder Value

Dollarama Secures Renewal of Normal Course Issuer Bid

On July 3, 2026, Dollarama Inc. announced that it has received approval from the Toronto Stock Exchange (TSX) to renew its normal course issuer bid (NCIB). This renewal allows the corporation to buy back up to 13,532,086 of its common shares over the coming year, which is approximately 5% of its total issued shares. The approved bid signifies Dollarama's commitment to enhancing shareholder value, reflecting the management's strategic approach to capital allocation.

The share repurchases under the NCIB are set to take place from July 7, 2026, until at least July 6, 2027. Share purchases will be executed through the TSX and other approved trading systems or by means permitted under existing securities regulations. In addition to open market acquisitions, Dollarama is allowed to repurchase shares through private agreements or specific repurchase programs, particularly under exemptions provided by the regulatory authorities.

Notably, purchases made via the open market will adhere to the prevailing market price at the time of acquisition, while those through private negotiations may occur at a lower price, reflecting discounts to the current market.

During the first half of 2026, Dollarama experienced an average daily trading volume of approximately 708,620 shares. Based on this figure, the retail giant is permitted to repurchase a maximum of 177,155 shares per day from the market, representing 25% of the average daily volume. Additionally, the company can execute block purchases weekly, provided these shares are not owned by its insiders, aligning with regulatory requirements set forth by the TSX.

To streamline the execution of its NCIB, Dollarama intends to establish an automatic securities purchase plan (APP) agreement with a designated broker. This plan will facilitate share acquisitions during times when trading restrictions are in effect, ensuring consistent share repurchases while maintaining compliance with TSX rules.

In the previous NCIB that expires on July 6, 2026, Dollarama was able to purchase a total of 6,835,200 common shares at an average price of $183.90 per share. Looking ahead, the Board of Directors believes the repurchase of shares represents a sound use of funds, further supporting the corporation's goal to enhance shareholder value.

Dollarama's strategic move is underlined by a clear emphasis on nurturing stakeholder interests amidst fluctuating market conditions. This forward-looking initiative showcases the retailer's dedication to its investors and its strong position within the Canadian market.

Founded in 1992, Dollarama is a significant player in the Canadian retail landscape, operating over 2,800 stores across the country and having made a substantial mark internationally, including a presence in Australia and Latin America. The corporation maintains a focus on delivering affordable products, catering to a diverse consumer base through value-based pricing strategies across various markets.

Conclusion: As Dollarama embarks on this renewed buyback program, it reaffirms its commitment to increasing shareholder value and maintaining its position as a top-value retailer. Investors can look forward to a significant boost in shareholder returns as the company executes its strategic share repurchase plans, aligning with overall market confidence and growth trajectories. The NCIB serves as a vital part of Dollarama's capital allocation strategy, promising favorable outcomes for its stakeholders.