Fintech Tingo’s shares slump as Hindenburg takes short position

(Reuters) – Hindenburg Research said it has taken a short position in Tingo Group, 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 and Carl Icahn’s flagship Icahn Enterprises.

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)