Hong Kong-based AMTD Digital (website) was listed on the Nyse on July 15 for $7.80 per share. In recent weeks, the price has risen to $1,679, representing a market capitalization of more than $310 billion. The shares of the little-known Asian fintech company have soared more than 21,000% since its IPO less than a month ago, making it more valuable than Bank of America.
The company, a subsidiary of investment holding AMTD Idea Group, which provides a “comprehensive one-stop digital solutions platform” for the FS sector, had a revenue of $25 million last year.
The company has become one of the most heavily traded stocks on retail platforms, with its rise compared to last year’s Reddit-WallStreetBets frenzy that sent GameStop and AMC shares soaring.
On the subreddit, however, members took offense to the idea that they were behind AMTD Digital‘s stock surge, with some speculating that it was a “Chinese scam.” In the meantime, the company seems to be in the dark and issued a statement thanking investors but admitting that there is no good reason for the rise.
“In the time since our IPO, the company has seen significant volatility in the ADS price and very active trading volume,” it said.
“To our knowledge, there are no material circumstances, events, or other matters relating to the business and operations of our company since the date of our IPO.”
