As the shares of AMTD Digital Inc. (NYSE:HKD) have soared 3,165% higher over the past seven days, people who invested early in the Hong Kong-based digital company have essentially won the lottery.
AMTD Digital Dips on Wednesday
The stock dropped 16.6% in highly choppy lunchtime trading on Wednesday, putting it on course to end a six-day winning streak. The stock has already been halted nine times for volatility. Its intraday price range has been between increases of 26.1 and decreases of 41%.
The company’s market value has increased by $250.95 billion during the last seven days, notwithstanding the day’s selloff.
The stock has increased by nearly 17,849% since AMTD Digital went public on July 15 at an IPO price of $7.80 per American depositary share (ADS). AMTD Digital currently has a market capitalization of about $259 billion.
AMTD IDEA Shares Have Also Gained Significantly
Investment holding company AMTD IDEA Group (NYSE:AMTD), which following the IPO beneficially owned an 88.7% interest in AMTD Digital (NYSE:HKD), was one of the lottery winners. As a result, AMTD IDEA’s share has grown significantly from $1.28 billion at the IPO price to around $229.78 billion.
After the IPO, AMTD Digital (NYSE:HKD) had 74.02 million outstanding ordinary shares, of which 8.37 million were Class A shares and 65.65 million were Class B shares, both of which were owned by AMTD IDEA. Five ADS are equal to two Class A common shares.
The price of AMTD IDEA shares increased 1.7% during Wednesday’s lunchtime trade and increased 265% over the previous seven days.
AMTD Digital Thanked Investors
AMTD Digital (NYSE:HKD) sent investors a “thank you note” on Tuesday in appreciation for a smooth IPO. The company reported “significant volatility” in the ADS price and “very active trading volume,” noting that its trading on the NYSE was “still undergoing our initial stabilization period”.
The company stated in its statement, “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.”
The business claimed to be actively watching the market for any anomalies or atypical trading activity.
AMTD Digital (NYSE:HKD) is currently worth more than 480 S&P 500 index components, including well-known Dow Jones Industrial Average components like Walt Disney Co. (NYSE:DIS), McDonalds Corp. (NYSE:MCD), Goldman Sachs Group Inc. (NYSE:GS), and Boeing Co. (NYSE:BA).
Featured Image: Megapixl © Emily2K
