Most of proceeds of 10%. |
Well they talk about returning "most of the proceeds" - so sounds like quite a high proportion - but pick a number. |
Going to retain far more than half. Likely to let 10% go |
Hi XAMF,
That £416m value for Parameta is based on a p/e of 8.1 for the whole business. If they float it and achieve p/e of 16 then the half they retain will maintain the current market cap at c. £2bn and give them say £400m to distribute to shareholders. Now a p/e of 16 may be conservative for a unique data firm such as Parameta - looking at comparative firms arguably highly conservative.
So if all goes ahead, and based on that p/e 16, we're potentially looking at a 20%+ cash return. However, its going to be a difficult for management to judge when's the best time to press the button in view of US market uncertainty.
Anyway IMHO there's no need to hurry and I feel the 2Q 2025 timeframe might be unrealistic if the US heads into a recession. Nevertheless, great to have this hidden value underpinning the share price. |
they paid $6oomm for liquidnet tapping shareholders for most of it in a rights issue its a block trading equity venue/dark pool for buy sides that nobody wanted to buy and rather than impair the purchase have fudged the numbers by chucking credit business facing banks and relative value broking business that previously rolled up the tullet/icap broking business line///thinking nobody would notice |
Thanks Maddox. That helps.
Hopefully we'll see the US market start to recover by the time Parameta is listed. |
My EBIT figures are Liquidnet £53m 13% Parameta £83m 21%. So, on a 'part of the sum' straight proportion basis Parameter is worth £416m and Liquidnet £257m. |
What net worth do you feel Liquinet contributes to TCAP's overall bottom line now? 42% of the company's EBIT came from Liquinet and Parameta last year? |
look carefully at the businesses they now conveniently classify as liquidnet v asset they purchased 4 or 5 years ago and should have wriiten down value of by now |
still prefer marex now partially listed or BGC GFI - most of the former tullet prebon management are there and whats left is just moving numbers around - look at iliquid net for where they now include relative value broking which is an old icap business and is just window dressing |
They also probably want to list at an optimum time and right now the US market is quite volatile. I think they are just really saying, we are ready to list when the time is right. |
I have taken the view that the board have every intention of listing a minority stake. Having clearly flagged their intention this caveat allows them to explore a better alternative option should one become available in the interim. Regardless of the route to market this will set a clear valuation for Parameta and (as Popit explains above) should add considerable value to TCAP's bottom line. |
Why the uncertainty though around the possible listing?.....are they just dangling a juicy carrot? |
The market is not yet really recognising the huge value here
Parameta as a company on its own will probably be worth more than the current Market Cap of ICAP at £2 billion
The 2 companies combined should be valued at about £4 billion or about £5 per share |
They are listing a 'minority stake'.
Taken from FY results:
º Focus is a US listing and maintaining a majority stake in the long-term, while keeping other options open. Liquidnet and Parameta Solutions accounted for 42% of Group adjusted EBIT (29% 2023).
º Would expect to return most of the proceeds of any Parameta listing to our shareholders.
º Majority of future potential value upside would indirectly accrue to TP ICAP shareholders. |
Hi, not looked at these for a while so catching up,I'd noted previously that the Parameta value was £1.5bn, and given they are retaining a majority stake does that mean that circa £735m could be returned to shareholders?. Originally I was under the impression that the full IPO value was going to be returned to shareholders.Can anyone clarify please, thanks. |
I too have topped up around 254. I like the prospect of a potential Parameta float (with the majority of proceeds going to shareholders) and have taken the view that this is highly likely to happen. As Maddox has stated above this stock is also a direct beneficiary of market volatility.
It will be interesting to see if we get a better response once US markets open. |
Great results - huge progress being made with exciting developments across all divisions. One point of concern - they are rather tentative about the Parameta float. Not sure why this would be the case as surely it is very much in their own hands? Parameta with a unique position in the market in providing indicative OTC pricing data has got to be an attractive investment even with a limited free float.
The economic and geopolitical driven volatility is very supportive of TCAP - one of the few firms to benefit from the current turmoil. With debt being paid down, dividend for the year 9% up (final dividend up 13%) and yet another £30m share buy-back the cash generation is impressive.
Mr Market has marked the shares down 3.5p 1.3% to 255.5p as I type so topped-up. |
Surprised this is trading down as profits are ahead of analyst’s forecasts.
Such a fickle market! |
I agree, management have done a great job. |
Very positive language used throughout the results |
Impressive results and dividend increase |
Furthermore the listing is being rumoured to be on Nasdaq |
I’ve held TCAP since July 20022, and will continue to hold for the now very big dividend yield at the buy price then, and because of the possibility of them listing Parameta Solutions in the US. This is what they said about it in their last Results update.
“Business Update
The Group is focused on delivering its three strategic priorities - Transformation, Diversification and Dynamic Capital Management - and will update on progress when it publishes, on 11 March 2025, its 2024 Preliminary Results. As previously announced at the Group's Interim Results in August, we are progressing strategic options in relation to Parameta Solutions. They include a potential offering, which might entail a listing in the United States, with the Group maintaining a majority stake. There is no certainty about either a public offering, or its location.” |
You're a sharp cookie Spooky. Always notice a few of the good posters about.
It got marked up at the open! I wanted to buy at 260p ha
Doesn't matter
Flirting with a breakout
Hope it breakouts for you |
Customisable watchlists with full streaming quotes from leading exchanges, such as LSE, NASDAQ, NYSE, AMEX, Bovespa, BIT and more.
Hot Features
Premium
