In an astonishing turn of events similar to the GameStop retail investor frenzy, shares of a relatively unknown Asian fintech have skyrocketed over 21,000% since its IPO less than a month ago, surpassing Bank of America’s valuation.
Hong Kong-based AMTD Digital made its debut on the NYSE on July 15, listing at $7.80 per share. In a matter of weeks, the price skyrocketed to $1,679, leading to a market capitalization exceeding $310 billion. The company, a subsidiary of investment holding firm AMTD Idea Group, offers a “comprehensive one-stop digital solutions platform” for the financial services sector, generating $25 million in revenues last year.
AMTD Digital has quickly become one of the most traded stocks on retail trading platforms, drawing comparisons to last year’s Reddit-led WallStreetBets craze that propelled shares of GameStop and AMC to unprecedented heights. However, some users on the subreddit have expressed discontent with the notion that they are fueling AMTD Digital’s price surge, with certain comments suggesting it may be a “Chinese scam.”
In response to the skyrocketing stock price, the company has publicly thanked its investors but acknowledged it’s unclear why the surge is occurring. “During the period since our initial public offering, the Company noted significant volatility in our ADS price and has observed very active trading volume. To our knowledge, there are no material circumstances, events, or other matters relating to our Company’s business and operating activities since the IPO date.”