Fintech Tingo's shares slump as Hindenburg takes short position (updated)

Tingo

06/06/2023 15:23

(Adds details on Tingo in paragraph 3)
       June 6 (Reuters) - Hindenburg Research said it has taken
a short position in Tingo Group  TIO.O , dragging shares of the
fintech more than 50% lower on Tuesday.
    The short-seller alleged that the company fabricated its
financials and criticized founder Dozy Mmobuosi's claims of
having developed "the first mobile payment app in Nigeria". 
    Tingo did not immediately respond to a Reuters request for
comment.
    The New Jersey-based holding company operates in Africa,
Southeast Asia and the Middle East, and its units have ventured
into agri-fintech, food processing and insurance brokerage. 
    "We contacted the app's actual creator, who called Dozy's
claims 'a pure lie,'" Hindenburg said. Reuters could not
independently verify the contents of the report. 
    The company's shares shed more than 55% to $1.13 in early
trading on Tuesday.  
    Tingo is the short-seller's fourth target so far this year, 
but a relatively smaller company compared with Indian
conglomerate Adani Group, Jack Dorsey-led Block Inc  SQ.N  and
Carl Icahn's flagship Icahn Enterprises  IEP.O . 
    Short sellers such as Hindenurg typically sell borrowed
securities and aim to buy these back at a lower price to pocket
the difference.
    
    

 (Reporting by Mehnaz Yasmin in Bengaluru; Editing by Anil
D'Silva and Devika Syamnath)
 ((Mehnaz.Yasmin@thomsonreuters.com;))