THG鈥檚 spot in the FTSE 250 list will be determined this week.
The online retailer鈥檚 position in the prestigious list, which is made up of the 101st to 350th mid cap companies listed in the London Stock Exchange, appears to hanging by a thread.
According to data from FTSE Russell, THG could lose its place alongside Bellevue Healthcare Trust and Mobico Group and be replaced by Avon Technologies, Gamma Communications and Wickes Group.
THG鈥檚 fate will be decided by its share price at a set point this week – probably Tuesday or Wednesday – but it currently stands at 24.20p, giving it a market cap of 拢335m 鈥� which is thought to be less than the level needed to stay on the FTSE 250.
If THG does lose its place on the FTSE 250 it will drop into the Small Cap Index.
However, one analyst has previously told 老九品茶Cloud that a 10 per cent uplift in its share price would probably be enough to keep it in the FTSE 250.
鈥淚f the recently issued convertible loan of 拢68m converts to equity, THG would go straight back into the FTSE 250, were it to fall out in this review,鈥� the analyst said last week.
THG was only included in the FTSE 250 Index in March alongside Hiscox and Atalaya Mining Cooper and the聽quarterly FTSE index review is based on changes to market cap.
In March, THG鈥檚 founder and CEO Matt Moulding hailed the company鈥檚 inclusion as an 鈥榠mportant moment in THG鈥檚 evolution鈥� following the demerger of THG Ingenuity.
The move was seen as an important step in raising the company鈥檚 visibility and opening up stock to index investors and active mid cap index investors.
FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide.
Writing last 聽month,聽Moulding revealed THG had cut its headcount by around 40 per cent in the last three years.
He said the combination of reducing the firm鈥檚 global workforce from around 10,200 to 6,300 in the three years to 2024, and cutting back on capex, has saved THG more than 拢200m annually.
The 53-year-old said by reinvesting the savings back in the business, THG was perfectly placed to capitalise on the demerger of Ingenuity and a rebrand of Myprotein.
THG is a global e-Commerce group headquartered in Manchester, operating through two聽leading consumer businesses: THG Beauty and THG Nutrition.
THG鈥檚 share price at the time of its 2020 IPO was 500p