Tingo Inc., a company that says it provides a market place for farmers in Nigeria, lost 94% of the value of its US-traded shares even before short-seller Hindenburg Research published allegations against the company.

The firm’s market capitalization dropped by $6.8 billion in the past 16 months until Monday, a day before Hindenburg published a note alleging that Tingo was an “exceptionally obvious scam with completely fabricated financials.” Tingo in a statement said that it “categorically refutes all the allegations and misinformation” outlined in Hindenburg’s report.

Tingo’s shares in the US plunged 80% on Tuesday. The company says it services about 9.3 million farmers — mostly in Africa’s biggest economy — leasing smartphones that allow its clients to access credit and markets via mobile-phone applications. But Joshua Oyedele, the chairman of the Federation of Agricultural Commodities Association in Ondo state, on Tuesday said he hadn’t heard of Tingo offering a platform for commodity traders in Nigeria.

Founder and Chief Executive Officer Dozy Mmobuosi said in an interview with Bloomberg in February 2022 that Tingo was seeking to raise $500 million to expand across Africa, and was in talks to list on the New York Stock Exchange. Both deals are yet to happen. His bid to buy Sheffield United has yet to be approved by English football authorities.

Mmobuosi didn’t respond to requests for comment emailed on Tuesday.

--With assistance from Tolani Awere.

Author: Anthony Osae-Brown