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.
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. 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.
Since AMTD Digital went public on July 15 at an initial public offering price of $7.80 per American depositary share (ADS), the stock has skyrocketed about 17,849%, and now has a total market cap of about $259.06 billion.
The company’s soaring market cap comes as the company recorded a profit of $22.1 million on revenue of $25.2 million in 2021, up from a profit of about $20.4 million on revenue of about $21.6 million in 2020.
One of the IPO’s lottery winners was Hong Kong-based investment holding company AMTD IDEA Group
which beneficially owned an 88.7% stake in AMTD Digital after the IPO. That means the value of AMTD IDEA’s stake has ballooned to about $229.78 billion from $1.28 billion at the IPO price.
AMTD Digital had a total of 74.02 million ordinary shares outstanding after the IPO, including 8.37 million Class A ordinary shares and 65.65 million Class B ordinary shares, which were all owned by AMTD IDEA. Every five ADSs represent two Class A ordinary shares.
AMTD IDEA shares rallied 1.7% in midday trading Wednesday, and have shot up 265.0% 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).
“To our knowledge, there are no material circumstances, events nor other matters relating to our company’s business and operating activities since the IPO date,” the company said in its statement.
The company said it is monitoring the market closely for any unusual trading activities or abnormalities.
Talk about unusual, AMTD Digital is currently more valuable than 480 of the S&P 500 index’s
components, including such iconic Dow Jones Industrial Average
components as Walt Disney Co.
Goldman Sachs Group Inc.
and Boeing Co.