THG, previously recognized as The Hut Group, operates an electronic commerce enterprise located in the United Kingdom.

Pushing for FTSE index inclusion

THG aims to shift all publicly-traded shares to the recently established Equity Shares Commercial Companies (ESCC) segment of the London Stock Exchange to gain eligibility for blue-chip stock index inclusions.

The company is currently undergoing a demerger process of THG Ingenuity, a technology platform launched in 2021 to provide e-commerce solutions for retailers. This move aims to streamline THG’s structure, focusing solely on its Beauty and Nutrition segments.

THG had partnered with SoftBank for investment in THG Ingenuity, but the deal was discontinued in 2022, resulting in SoftBank selling its stake back to THG.

THG’s public market struggles

Despite the tech boom of 2020 and 2021, THG has faced challenges in maintaining the value of its shares. The company’s shares peaked in 2020 and have since decreased significantly.

THG’s founder, Matthew Moulding, has expressed dissatisfaction with London’s tech market listing process, suggesting that listing in the U.S. would have been a better choice.

THG’s prospective demerger and listing restructuring indicate strategic efforts to adapt to market conditions and enhance shareholder value.