THG Plc plans to demerge its technology platform and switch the listing of its core beauty and nutrition business in an attempt to boost the e-commerce company’s flagging share price.

The technology division known as Ingenuity provides online commerce services to other retailers. If spun off, it would leave THG with its beauty and nutrition arms, which it described as profitable and cash-generative in a statement Tuesday morning.

It follows a deal in June to sell its luxury brands, which include Coggles, to Mike Ashley’s Frasers Group Plc.

Shares in THG, previously known as The Hut Group, rose in early trading in London on Tuesday before falling as much as 4.9 percent. They have endured a bruising time on the stock market, falling about 90 percent since THG’s listing in 2020 that valued it at more than £5 billion ($6.6 billion).

Now THG, which owns brands such as Lookfantastic, plans to transfer its listing to a category that would allow it to be included in FTSE benchmarks. THG is currently part of a “transition” category following the introduction of new rules from the Financial Conduct Authority which came into effect in July.

The FCA is changing the UK’s listing rules in an attempt to boost the attractiveness of the City of London, amid fears of its dwindling status among global public companies.

THG wants to move to the equity shares (commercial companies) category, which would allow it to be considered for inclusion in the FTSE UK Index Series, raising its visibility.

Vocal Critic

Chief executive officer Matt Moulding has been a vocal critic of the London market, including coverage from journalists, and has said he regrets listing THG. Last year, the company bought free newspaper City A.M. in a deal that surprised investors.

Tuesday’s announcement came as THG released half-year results for the six months ending June 30, with total revenue falling 3.6 percent to £934 million.

Analysts from Panmure Liberum said the results were disappointing, “with nutrition profitability much softer than expected and beauty growth slowing despite a favorable market backdrop.”

They said the spinoff was potentially good news but added that it was unclear how the Ingenuity division, “which loses significant cash every year,” would be funded under the plans.

By Sabah Meddings

Learn more:

Frasers Buys THG’s Coggles Website as They Unveil Partnership Deal

THG on Monday said it had sold sites including Coggles to Frasers as part of a partnership deal that also includes Frasers using THG’s technology in some parts of its business.