THG shares continue rollercoaster ride after disappointing results
THG shares can’t seem to stay on an even keel. No sooner did they rise 40% Monday after news of a takeover approach for the company than they fell almost 20% on Tuesday on the back of investor disappointment in the company’s results.
This continued the rollercoaster ride that the shares have been on since the company first listed on the stock exchange a few years ago.
Since the beginning of 2021, they’ve fallen from a value of almost £8 each to the opening level of less than 79p on Wednesday. The company may be worth more than £1 billion, but that current valuation falls far short of what it was valued at on its stock exchange debut. And last year, it said it turned down bid approaches that valued it at around £2 billion.
On Monday, the company had revealed an approach from Apollo Global Management, sending the share price skywards. But news of a full-year pre-tax loss of £550 million on Tuesday and a hefty level of debt caused the plunge.
However, the price didn’t fall back to what it had been last week and it rose a few percent on Wednesday, so there’s clearly some hope out there among investors that the company might seriously consider a takeover offer.
The firm’s listing in late 2020 had been the biggest London IPO in five years but the share price has been in decline ever since. Although it stayed fairly elevated and was at £6.64 in September 2021, it plunged after that and has been under £1 since the middle of last year (falling to around 36p in October).
