In what seems to be another GameStop-style retail frenzy, shares in a little-known Asian fintech (AMTD Digital) have exploded by over 21,000% since its IPO barely a month ago, making it more valuable than Bank of America.
Hong Kong-based AMTD Digital was listed on the NYSE on July 15 at $7.80 per share. In the weeks since then, it has seen the price explode to reach $1,679, giving it a market capitalization of over $310 billion.
The firm, a subsidiary of investment holding company AMTD Idea Group which offers a “comprehensive one-stop digital solutions platform” for the FS industry, made $25 million in revenues in 2021.
It has already become one of the most traded stocks on retail platforms. Its surge could be compared to the Reddit WallStreetBets frenzy of 2021 that saw shares in AMC and GameStop explode. Nonetheless, on the subreddit, posters have taken a lot of offense to the idea that they are responsible for the AMTD Digital price rise. Some of them are speculating that it is a “Chinese scam”.
In the meantime, the firm seems to be in the dark, issuing a statement thanking investors but admitting there is no good reason for the surge.Buy Bitcoin Now
“During the period since our initial public offering, the Company noted significant volatility in our ADS price and, also observed some very active trading volume. 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.”