Max Keating, DCNF
A Hong Kong-based tech firm sold its shares at an initial public offering (IPO) on July 15th for $7.80 each; they’re now worth over $2500, making the company the 14th largest in the world by market capitalization, The Street reported Tuesday.
AMTD Digital is a financial services company traded on the New York Stock Exchange (NYSE), and despite only having a reported $25 million in annual revenue and 51 employees, the company has overtaken the likes of McDonalds, Disney and Nike in market capitalization, according to The Street, sits at 14th overall, sandwiched between Exxon and Walmart. Company executives issued a statement Monday thanking investors for the successful completion of their IPO, but claimed they don’t know what’s driving the 32,000% increase in listing price, according to Markets Insider.
“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,” AMTD Digital said in its press release Monday.
Markets Insider speculates that the astounding growth could be the result of the fact that there are just 19 million shares available, and so when “there’s overwhelming demand for the stock, and few sellers, the stock price goes vertical.”
Others are less convinced by such a benign explanation and suggest that something more nefarious is going on. Finance blogger Nate Anderson points out that AMTD Digital is “88.7% owned by AMTD, a sketchy Hong Kong-based underwriter” for IPOs that he has followed in the past.
Anderson notes that AMTD has been accused of fraud in Hong Kong, and that every IPO it has has been behind in the past has failed, with proceeds making their way back to the parent company.
$HKD is a new IPO that just surged to a market cap of over $425 billion, despite having only ~$25m in annual revenue.
The company is ~88.7% owned by AMTD, a sketchy Hong Kong-based underwriter we at @HindenburgRes have written about previously.
(1/x) pic.twitter.com/P5IGwxxNDV
— Nate Anderson (@ClarityToast) August 2, 2022
Others on the popular retail investing forum Wall Street Bets have pointed out the vagueness, poor design and misspelling in the domain name of AMTD Digital’s website while others have called it “such and obvious pump and dump.”
Looking into this AMTD digital company and their “learn more” buttons dont work on their website
Do i smell mayonnaise?? pic.twitter.com/5wv5R0YuPU
— the death spiral of wall street (@thisisold116) August 2, 2022
The U.S. Securities and Exchange Commission declined to comment for the DCNF.
For licensing opportunities of our original content, please contact [email protected].
DONATE TO BIZPAC REVIEW
Please help us! If you are fed up with letting radical big tech execs, phony fact-checkers, tyrannical liberals and a lying mainstream media have unprecedented power over your news please consider making a donation to BPR to help us fight them. Now is the time. Truth has never been more critical!
- Judge dismisses sorority sisters’ lawsuit attempting to block transgender woman from joining: ‘the court will not define a woman today’ - August 29, 2023
- Here’s the EYE-POPPING total amount Trump raised in one day off his mugshot - August 27, 2023
- US military chopper carrying more than 20 Marines crashes over Australia - August 27, 2023
Comment
We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the ∨ icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.
