THG has reportedly handed over a dossier to the financial watchdog the FCA which it hopes will prove that it experienced a coordinated attack on its share price.
According to The Times, THG has passed over data that it believes indicates irregular stock market trading and short-selling. The paper also reports that THG chief executive Matthew Moulding is “particularly suspicious” of the trading which occurred following its investors day presentation on the 12 October 2021.
Its shares plunged 34.75% immediately after the presentation, which the retailer used to outline its technology platform named Ingenuity. The platform aims to provide stand-alone digital services, including hosting, studio content, translation services and beauty product development and manufacturing to consumer brand owners.
After debuting on the London stock exchange valued at £5.6bn, the company has seen its shares plummet in the past year with its value now sitting at around £2.8bn.
It comes after Moulding expressed his “regret” over his decision to float the company on the London Stock Exchange, adding that he “should have IPO’d in America”.
Moulding made the comments during an interview at the GQ Heroes awards in November of last year, and said that the experience of the IPO “sucked from start to finish”. He also added that if given the chance would “not have done it again”.
It is said that THG’s dossier will also form part of the FCA’s inquiries into the actions of a salesperson at London stockbroker Numis who sent a note to investors in November alleging “accounting irregularities” at the retailer. Numis later quickly retracted the note which it said contained “inaccuracies”.