London, January 31, 2026, 09:03 GMT — Market closed
- 3i slipped on Friday following a strong rally the day before.
- New shares were issued to finance a larger stake in discount chain Action.
- Action’s investor seminar, scheduled for late March, is the next major event to watch.
3i Group (III.L) shares closed Friday at 3,351 pence, slipping 2.1% after giving up gains from a positive trading update at its key asset. (Yahoo Finance)
This move is significant since 3i effectively serves as a public proxy for Action. Investors have been on edge, watching for any easing of the turmoil in France and whether 3i’s valuation levels remain intact.
A new technical factor has emerged. The company increased its share count to finance a larger position in Action. Next week’s trading will reveal if the market can absorb the extra shares without pushing prices lower again.
3i surged 8.8% on Thursday, standing out as one of the biggest gainers in the FTSE 100. A strong third-quarter update gave a boost to the investment banks and brokerages sector that day. (Reuters)
3i reported its net asset value (NAV) per share climbed to 3,017 pence at Dec. 31, up from 2,857 pence at Sept. 30. Action posted €16.0 billion in net sales for 2025, with like-for-like sales—measuring stores open at least a year—up 6.1% in the first four weeks of January. France’s growth accelerated to 2.1% in the same period. CEO Simon Borrows said 3i has got “a good start” to the final quarter. The company’s deal with GIC will increase its stake in Action to 65.3%, swapping new 3i shares valued at around £1 billion. (3i)
On Friday, 3i filed a notice confirming it issued 31,353,859 new shares now trading on the London Stock Exchange. Following this and an employee share plan allotment, total voting rights climbed to 1,024,699,476 shares, the filing revealed. (Investegate)
William Woods at Bernstein noted that “January started well” for Action, with a sequential uptick in France likely to shore up sentiment on 3i’s stock. He pointed out that France makes up roughly a third of Action’s business, he wrote. (Financial Times)
Like-for-like sales exclude the boost from new store openings and zero in on the existing outlets. For a rapidly growing discount chain, this figure usually grabs investors’ attention first, as it signals underlying demand rather than just expansion.
When London reopens, traders will zero in on one thing: whether the stock can maintain its post-update level or if the larger share count and profit-taking will weigh it down.
Risks are still on the table. If French consumers keep tightening their belts or competitors ramp up discounts, Action’s sales growth might slow once more. Plus, 3i’s portfolio is quite concentrated, meaning minor shifts in assumptions could quickly change sentiment.
3i has an upcoming event on March 26—a webcast Action capital markets seminar. The group is set to provide more detail on its performance and guidance. (3i)
