This fintech stock rallies over 32,000% since July IPO before plunging to half in value
1 min read . Updated: 04 Aug 2022, 02:24 PM IST
Premium- A little-known fintech stock saw its market value soar in recent days, but later dropped in half
A little-known Hong Kong company saw its stock market value soar in recent days, but later its price dropped in half. AMTD Digital's market capitalization surged above $450 billion in a 244% jump on Tuesday, but later the stock plunged 40% on Wednesday, reminding investors of the meme stock mania last year that drove record rallies in shares of companies such as GameStop and AMC.
The stock has soared about 21,000% since its July IPO, when it listed at a price of $7.80 its New York debut last month. The firm's shares have been on a rollercoaster ride, closing on Wednesday at $1,100, dropping half in value after rising over $2,555 apiece on Tuesday, which was over 32,600% higher from its listing price.
AMTD Digital was the most-mentioned stock on Reddit.com, the social media platform central to the meme stock craze of 2021, when shares gained popularity among retail investors through social media. The fintech company, which provides loans and services to startups in exchange for fees, has a low float and is tightly controlled by parent company AMTD Idea.
The company said on Tuesday there was no material change or event related to the company's business and operating activities since the IPO date and that it was monitoring the share volatility. The stock witnessed an eye-popping surge Tuesday alone as trading was halted several times for volatility, though the stock fell back to earth on Wednesday.
Amtd Digital Inc skyrocketed 108% after its US initial public offering on July 16, the biggest first-day jump for a listing of its size. The debut showing was the best for a listing of more than $25 million on a US exchange this year, according to data compiled by Bloomberg. The Hong Kong-based financial services platform, trades on the New York Stock Exchange under the symbol HKD.
There has been a similar surge in some other recently listed US companies, including Getty Images which jumped over 200% since its debut on July 25.
(With inputs from agencies)
