(Alliance News) - THG PLC has given the UK Financial Conduct Authority information that it thinks will show that stockbrokers and hedge funds have worked together to drive down the e-commerce company's shares, the Times reported on Sunday.
The online retailing platform provider initially had a promising start to life on the London Stock Exchange, but shares have since faced a wave of selling amid a lack of investor confidence.
THG shares were 8.5% lower at 177.90 pence each in London on Monday afternoon, 64% below its 500p listing price in September 2020.
According to the Times, THG has passed on what it believes to be irregular stock market trading and short-selling data to the watchdog.
THG Chief Executive Matthew Moulding is particularly suspicious of trading on October 12, the Times said. THG shares dropped 35% that day, as the company held its first Capital Markets Day. The meeting was meant to reassure shareholders but instead it spooked them.
One part of THG's FCA submission concerns Numis Corp PLC, the Times reported. An salesperson at the broker, which the newspaper didn't name, had issued a note to "hundreds of clients in November" alleging "accounting irregularities" at THG, the Times said. The note recommended selling THG shares. However, Numis subsequently issued a corrected version of the note, removed the reference to accounting issues, and apologised, the newspaper said.
https://www.thetimes.co.uk/article/thg-hands-fca-dossier-on-city-conspiracy-over-share-price-plunge-97tncqd9t
By Eric Cunha; ericcunha@alliancenews.com
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