THG is to be included in the FTSE 250 Index.
The move is seen as crucial following the demerger from THG Ingenuity because it opens up the company’s stock to index investors as well as active mid cap investors.
The date of the inclusion will be March 21st and has been hailed as a ‘total game-changer’ by one market analyst.
Inclusion is subject to formal confirmation from FTSE Russell but it’s seen as a crucial step in raising the company’s visibility.
CEO and co-founder Matt Moulding said: “Our anticipated inclusion in the FTSE 250 marks an important moment in THG’s evolution following the demerger of THG Ingenuity.
“As a global beauty, health and wellness consumer brands group, we continue to make significant progress against our strategic priorities.”
One market analyst told BusinessCloud: “It’s a total game-changer. This change will lead to potential new buying of between 50-100 million shares.
“There are approximately 1.3bn shares in THG in issue and the index trackers alone could own 6 per cent of the company.
“When you add in the potential shares bought by active mid cap funds you can see why this is so significant.
“It’s fair to say THG has been working on inclusion into the FTSE 250 Index for the best part of 12 months.”
All eyes will be on THG’s share price – which currently stands at just under 34p – in the run-up to the actual inclusion on March 21st.
THG is a global e-Commerce group headquartered in Manchester, operating through two leading consumer businesses: THG Beauty and THG Nutrition.
THG Beauty operates prominent online platforms including Lookfantastic, Dermstore and Cult Beauty.
Last month a positive 33-page report by respected analysts Jefferies concluded: “The attractions of the THG equity story should become increasingly apparent.”
Jefferies is one of the world’s leading full-service investment banking and capital markets firms and the positive sentiment has been largely driven by the demerger of THG Ingenuity from the profitable THG Beauty and THG Nutrition.
The analysts have set a price target of 75p per share. On the upside, Jefferies predict THG’s share price could rise to 135p.
The projections are still well down on the 500p IPO share in 2020.