TP ICAP mulls Wall Street debut for data unit

(Sharecast News) - Broker TP ICAP said on Tuesday that it is mulling a New York listing for its data business, with the debut potentially happening as early as the second quarter. The City stalwart said it was considering various options for Parameta Solutions, but the focus was listing a minority stake in the US.

Nicolas Breteau, chief executive, said: "Should we proceed - with no certainty we will do so - the listing could occur as early as the second quarter.

"Our priority is to create sustainable shareholder value and retain, for the long term, the majority of any upside potential, while providing Parameta with a greater ability to grow on a standalone basis."

The listing would be a blow the London market, which is struggling to attract flotations. TP ICAP - which was formed by City veteran Michael Spencer - said the US "has the deepest, most liquid public markets" and was home to a number of Parameta's quoted peers as well as more research analysts.

Around 93% of Parameta's revenues are US dollar denominated.

The update came as TP ICAP posted numbers for the year to December end. They showed a 3% uplift in revenues - or 5% on a constant currency basis - to £2.25bn, while earnings before interest, tax, depreciation and amortisation jumped 7% to £398m.

Earnings before interest and tax were up 8% at £324m.

Breteau said: "We delivered record profits in 2024. All divisions traded well, underling the power of our diversified business and the continued delivery of our strategy."

Looking to the current year, TP ICAP noted: "Geopolitical tension, and the uncertain outlook for trade policies, inflation, as well as interest rate movements, should continue to drive volatility that is supportive for our business.

"Subject to movements in foreign exchange rates, the board is comfortable with current market expectations for adjusted EBIT."

Consensus is currently for around £345m.

Shore Capital, which has a 'buy' rating on the FTSE 250 stock, said the results "read well, with P&L metrics ahead of consensus forecasts".

It continued: "Despite recent share price strength, forecast momentum is likely to be positive in the near term after a strong set of results and what we surmise to be good trading conditions for the core business.

"Moreover, partial disposal of Parameta, which is now looking imminent, could unlock significant incremental value."

As at 1015 GMT, shares in TP ICAP were nearly 1% lower at 257.5p.