Magna International Inc. (TSX: MG, NYSE: MGA) was at last look up 2.7% in US premarket as it announced Tuesday the termination of its existing Normal Course Issuer Bid effective since February 15, 2024 and the Toronto Stock Exchange has accepted its Notice of Intention to establish a new Normal Course Issuer Bid.

Pursuant to the notice, Magna may purchase up to 28.5 million Magna common shares, representing approximately 10% of its public float. As at October 31, 2024, Magna had 287,342,204 issued and outstanding common shares, including a public float of 286,960,792 common shares.

Tuesday's statement noted the primary purposes of the New NCIB are purchases for cancellation, as well as purchases to fund Magna's stock-based compensation awards or programs. Magna may purchase its common shares for cancellation, from time to time, if it believes that the market price is "attractive" and that the purchase would be an appropriate use of corporate funds and in the best interests of the corporation.

The New NCIB will commence on November 7, 2024, and will terminate no later than November 6, 2025.