UK's TP ICAP shares jump as it explores options for data unit

(Reuters) -Broker TP ICAP said on Tuesday it is exploring options for its fast-growing data unit Parameta, including potentially listing a minority stake in the business while retaining ownership.

Shares in the world's biggest inter-dealer broker jumped more than 10% to their highest in nearly three years, topping the FTSE 250 index.

CEO Nicolas Breteau said Parameta's growth prospects and value are "not appropriately reflected in our share price".

The unit, which sells data to traders, generated 8.6% of the total group revenue in 2023.

In 2022, U.S. activist investor Phase 2 Partners called on the company to explore a sale as its share price declined. Shares have mostly recovered from that year's lows.

TP ICAP also on Tuesday reported better-than-expected annual adjusted profit before tax of 271 million pounds ($347 million) and announced a new 30 million pound share buyback program, helped by the resilient performance of its energy and commodities unit.

Revenue for the year to Dec. 31 came in at 2.19 billion pounds, better than the 2.16 billion pounds that analysts were expecting, according to a company-compiled consensus.

"Trading in the first two months of the year has been good. We remain comfortable with current market expectations for full-year 2024," the company said.

($1 = 0.7810 pounds)

(Reporting by Eva Mathews in Bengaluru; Editing by Dhanya Ann Thoppil, Sonia Cheema and Jan Harvey)