BlackRock is looking to sell nearly half its stake in online beauty and health products seller THG (THG), according to reports that emerged on Tuesday.
One of the world’s largest fund management groups, BlackRock is the company’s biggest shareholder after founder Matthew Moulding’s 22.2% holding, according to MarketScreener data, with a 9.54% stake and is believed to be trying to place 55 million of its 116.4 million shares.
Shares in the company, also known as The Hut Group, plunged more than 7% in morning trade on Tuesday, clinging by their fingernails above the 200p mark at 200.5p.
THG floated shares on the London market in October 2020, raising £1.88 billion of growth funding from investors and valuing the business at £5.4 billion based on the 500p price at IPO (initial public offering).
MASSIVE MIS-FIRE
However, the company has been rocked lately after a presentation to analysts and key investors last month spectacularly backfired.
The City get together had been designed to reassure THG backers about the long-term prospects for its Ingenuity e-commerce platform, deemed the most exciting part of the business by most analysts.
One analyst who attended the event said they were left disappointed by the lack of financial detail put forward by the company.
The stock has now more than halved since that presentation, extending a miserable 70% plunge since early September that has wiped more than £3 billion of the firm’s market cap.
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