Manchester-based online beauty and nutrition retail giant The Hut Group (THG) said on Monday its CEO Matthew Moulding “in furtherance of good corporate governance” has confirmed his intention to cancel his “special share” rights.  

“This cancellation will facilitate the group’s application to step-up to the premium segment of the main market of the London Stock Exchange in 2022,” said THG.

THG was shocked last week by a 35% share price collapse after a presentation to investors was badly received amid corporate governance concerns about the Softbank-backed online retailer.

THG has a complex corporate structure that some investors find opaque and fail to fully understand.

A premium listing will permit THG to gain UK FTSE indexation — which would mean index-tracking funds would have to buy THG shares.

THG shares rose about 23% on Monday’s news.

THG’s many businesses include beauty retailer Lookfantastic, supplements firm Myprotein, makeup brand Illamasqua and beauty box service Glossybox.

“While the group currently complies with many aspects of the UK Corporate Governance Code published by the Financial Reporting Council, THG’s board intends to undertake a further review of its corporate governance arrangements in conjunction with its application to step-up to a premium listing,” said THG.

Moulding said: “After the anniversary of our 2020 listing we feel that the time is right to make this next step and apply to the premium segment in 2022, thereby continuing the development of THG as we endeavour to deliver our strategy for the benefit of our shareholders, key stakeholders and employees.”