AMTD Digital

Shares of AMTD Digital on Wednesday extended an eye-popping rally fueled by retail investors this week that briefly took the Hong Kong-based fintech's ...

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Convoluted ownership structure behind AMTD Digital points to Calvin Choi, an ex-UBS banker who's fighting an industry ban in Hong Kong.

A little-known Asian fintech company that became the latest stock sensation, skyrocketing days after listing on the New York Stock Exchange, was recently ...

A little-known Asian fintech company that became the latest stock sensation, skyrocketing days after listing on the New York Stock Exchange, was recently falling Wednesday.\n\nAMTD Digital, a nearly three-year-old business controlled by a Hong Kong-based financial institution, went public on July 15 after selling 16 million American Depositary Shares at $7.80 apiece, for a total of $125 million in proceeds. It was recently down about 22%, at prices under $1,000 per share, on Wednesday morning, with trading again paused earlier in the session.\n\nAMTD Digital’s surge attracted individual investors on online forums such as Reddit’s WallStreetBets. In one trending post on Tuesday, hundreds discussed the company and the get-rich-quick opportunity it presented. On Tuesday, the shares—trading under the ticker HKD—closed at $1,679, after hitting a high of $2,555.30 earlier in the day.\n\nTrading was halted 18 times during the day due to the extreme volatility. Those underwriters include AMTD Global Markets, a subsidiary of AMTD Digital’s parent company, AMTD Idea Group.\n\nAMTD Idea’s own shares more than tripled on Tuesday to $7 apiece, and were up 1.2% in morning trading on Wednesday. AMTD Idea held 88.7% of AMTD Digital’s outstanding shares following the latter’s IPO, according to an SEC filing.\n\nNathan Anderson, a New York-based activist investor and the founder of Hindenburg Research, said the small number of AMTD Digital shares available for trading, coupled with strong retail interest, has helped fuel the trading frenzy.\n\n“When there’s a very thin number of shares available to trade, the stocks can be particularly volatile,” Mr. Anderson said. The company, which provides digital financial services to individuals and businesses in Asia, reported $24 million in net profit in the 10 months through the end of February 2022, according to its listing prospectus.\n\nIn a press release Tuesday, AMTD Digital thanked investors for the recent completion of its IPO. It acknowledged the “significant volatility” in its share price, and said it knows of no material circumstances or events that would have caused the unusual trading.\n\nThe company also noted that underwriters of its IPO can purchase an additional 2.4 million shares at the offering price before August 15, under what’s known as a greenshoe option.

Early investors in AMTD Digital Inc. have basically won the lottery, as the Hong Kong-based digital business developer's stock has zoomed 3165% higher over.

It has traded in an intraday range of up 26.1% to down 41.0%. Even with the day’s selloff, the company has still added $250.95 billion in market capitalization over the past seven days. On Tuesday, AMTD Digital issued a “thank you note” to investors, for the successful completion of its IPO. The company said it has noted “significant volatility” in the ADS price and “very active trading volume,” as the ADS trading was “still undergoing our initial stabilisation period” on the New York Stock Exchange (NYSE). AMTD IDEA shares rallied 1.7% in midday trading Wednesday, and have shot up 265.0% over the past seven days. Early investors in AMTD Digital Inc. have basically won the lottery, as the Hong Kong-based digital business developer’s stock has zoomed 3,165% higher over the past seven days. The stock HKD, -22.57%pulled back 16.6% in very volatile midday trading Wednesday — it has already been halted nine times for volatility— putting it on track to snap a six-day win streak.

Unknown company out of Hong Kong managed to join the ranks of the global megacaps worth around a half trillion dollars, trading under the ticker HKD.

Using a thank-you letter to its newly minted shareholders as opportunity, it claimed it, too, was baffled by the performance of its stock. AMTD Digital basically sells a kind of club membership to its “SpiderNet Ecosystems Solutions,” which claims to bring benefits by connecting businesses to each other. This has been an ongoing source of frustration for investors in many Chinese stocks. It also has another subsidiary, AMTD IDEA, listed on the New York Stock Exchange as well, though this is worth only $14 billion. A look at its website reveals little of its business model. Fortune sought to contact the company, but emails and calls were not immediately answered.

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A unit of Morgan Stanley invested in a funding round in 2019. Century City International Holdings Ltd., owned by members of Hong Kong’s real estate tycoon Lo family, holds a 5.8% stake in the firm. It’s a mystery why the stock has surged, though some analysts have pointed to its tiny public float. That means the firm — which develops digital businesses, including financial services — is worth more than Bank of America Corp., Morgan Stanley and Goldman Sachs Group Inc., despite reporting just $25 million in revenue for the year ended April 2021. AMTD Digital didn’t immediately reply to a request for comment. They’re since up more than 22,000% from the initial public offering price of $7.80.