Proactive Investors - THG PLC (LON:THG), the e-commerce retailer, is exploring plans to list its nutrition arm, Myprotein, in the United States, according to reports from the Telegraph.
This move comes as activist investors, notably Kelso Group, urge CEO Matt Moulding to spin off the division.
Kelso, which holds 8 million shares in THG, has publicly advocated for the separation of Myprotein, a nutrition division known for its bars and drinks catering to fitness enthusiasts.
However, any potential listing of Myprotein is not imminent due to ongoing market volatility that has significantly impacted IPO activities.
The possible listing raises eyebrows given THG's challenges since its London Stock Exchange listing in 2020. Its share price has dropped by over 90% since then, with its valuation decreasing from approximately £6.5 billion in September 2020 to around £850 million presently.
THG had previously explored an IPO for its THGBeauty brands, Lookfantastic and GlossyBox, but sources suggest that nutrition is now the more likely candidate.
Myprotein's revenues increased to £675 million last year, contributing to THG's overall turnover of £2.2 billion.
THG isn’t the first UK company to consider a US listing, with chipmaker Arm Holdings (NASDAQ:ARM) IPO-ing in New York last month and betting firm Flutter exploring a secondary stock Stateside.