THG shares have been on a wild rollercoaster ride recently, leaving investors on edge. The stock initially skyrocketed by 40% on Monday following news of a takeover offer, but then plummeted by almost 20% on Tuesday due to disappointment over the company’s financial results. This kind of volatility is nothing new for THG shares, as they have been on a rollercoaster since their initial listing on the stock exchange a few years ago.

Since the start of 2021, THG shares have experienced a significant drop in value. They have gone from being valued at nearly £8 each to less than 79p on Wednesday. Although the company still holds a valuation of over £1 billion, it is a far cry from its stock exchange debut valuation. In fact, just last year, THG rejected bid offers that valued the company at approximately £2 billion.

The rollercoaster ride for THG shares continued this week. On Monday, Apollo Global Management announced a takeover approach, causing the share price to soar. However, on Tuesday, THG reported a full-year pre-tax loss of £550 million and a considerable amount of debt, resulting in a sharp decline in the share price. Despite this setback, the share price did not drop back to its previous levels and experienced a modest increase on Wednesday, offering a glimmer of hope for investors that a takeover offer may still be on the table.

It is interesting to note that THG’s listing in late 2020 was the largest London IPO in five years. However, since then, the company’s share price has been on a downward trajectory. Although it managed to maintain a reasonably high valuation of £6.64 in September 2021, it experienced a sharp decline thereafter, falling below £1 by the middle of last year and hitting around 36p in October.

The volatile nature of THG shares raises concerns about the company’s performance and future prospects. Despite its current valuation, the drastic decline in share price and the rejection of previous bid approaches indicate uncertainty surrounding THG’s true value. Investors will undoubtedly be closely watching how the company handles these challenging times and whether a potential takeover bid becomes a reality.

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