Hong Kong-based AMTD Digital’s share price has surged by more than a hundredfold since its IPO last month, though there appears to be little reason for the extreme market optimism.
On July 15, AMTD Digital listed its American depositary shares (ADS) on the New York Stock Exchange at $7.80 each and since then, the price has soared to inexplicable new heights. At one point, AMTD Digital rose to over $2,500 per share – a more than 30,000 percent increase – resulting in a market capitalization of $400 billion that surpassed corporate behemoths like Walmart or Exxon Mobil, despite reported annual revenue of just $25 million last year.
According to a statement from the firm, AMTD Digital acknowledged the significant volatility of its shares and has observed «some very active trading volume», though it notes that there have been no material events that have occurred since its IPO a few weeks ago.
«The company is also monitoring the market closely for any unusual trading activities or abnormalities,» the firm added.
AMTD Digital
Backed by Hong Kong’s richest man Li Ka-shing, AMTD Digital is a subsidiary of AMTD Group which offers a range of financial services including investment banking, asset management and insurance. It is also one of the shareholders of Hong Kong-licensed virtual bank Airstar Bank, alongside Chinese mobile giant Xiaomi.
AMTD Digital’s New York-listed ADS have since cooled down and are now trading at around $1,700.
