3i Group (III ) raced towards a £25bn market value today after a brief but positive update pushed shares in the private equity giant 8.4% higher.

Before and after a City briefing by Action – the European discount retailer that accounts for nearly two thirds of 3i’s £19.7bn portfolio – the shares advanced 213p to £27.41.  

Having told investors at its third quarter results on 1 February that Action had begun the year with ‘good momentum’ across its markets, 3i chief executive Simon Borrows confirmed that the rapidly growing Dutch company had seen ‘a strong start’ to 2024.

Total net sales of €2.5bn were up 21% on a year ago and like-for-like sales, excluding store openings, 9.6% higher with growth in transactions, not inflation, driving the performance, he said.

The business had added 32 new stores to a previous total of 2,566, including its first two stores in Portugal, he added.

Borrows also said Action planned to make another dividend payment, having paid 3i £189m in December.

Meanwhile, the rest of the private equity and infrastructure portfolio continued to ‘demonstrate overall resilience’, he said.

Christopher Brown, investment companies’ analyst at JPMorgan Cazenove, maintained an ‘overweight’ recommendation, noting the shares at last night’s close of £25.28 stood at a 21.3% premium to his estimated net asset value of £20.84 per share. After today’s spike, that premium has increased to over 30%.

The last net asset value published by 3i was £20.34 at 31 December following an 8% rise in the previous three months largely the result of Action’s growth.

Before today’s spurt, which accompanied a good day for the UK stock market, the shares had seen a quiet year, up just 4% though having soared 71% over one year and provided a stunning 801% total return in the past decade.