THG wants to prove to FCA that stockbrokers conspired to push its share price down
E-commerce firm THG has given a dossier of data to the Financial Conduct Authority (FCA), in a bid to prove hedge funds and stockbrokers conspired to push its share price down.
THG chief executive Matt Moulding believes his firm was the victim of an aggressive short attack, at the hand of the media, investment banks, hedge funds and fund managers.
THG’s float in September 2020 was the largest London stock market debut since 2013 and netted the company a £920m boost.
Its value rose from £5.6bn on its first day to £13bn in January last year but the group has suffered a difficult 12 months after investors questioned its value and its market capitalisation stood at £2.8bn on Friday, January 7.
According to the Sunday Times, some of the data shared by THG with the FCA relates to trading patterns on October 12, the day of a large share price drop.
The City regulator is now looking into the actions of a sales person at London stockbroker Numis, after they urged clients to sell shares, claiming THG had accounting irregularities.
THG has not provided any public evidence to back up its claims.
Numis had been one of the investment banks running THG’s float in September 2020.
