Tiny IPO soars 1,150% in the US Launched in the wake of AMTD Digital
(Bloomberg) – For the seventh time this year, a small US company with headquarters in China or Hong Kong listing this stock has witnessed a dizzying price increase after its initial public offering. they.
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This time, Magic Empire Global Ltd. of Hong Kong jumped 2,325% from its $4 IPO price to close at $97 in Friday’s launch. It is the latest in a string of similar moves that include AMTD Digital Inc. – the company became bigger than Goldman Sachs after growing 14,000%.
Read more: Digital AMTD draws attention to a pattern of IPOs
“The more a gambler gambles, the more he loses. #Silliness tweeted, Michael Burry – the famous investor who predicted the housing collapse in 2008 – along with a screenshot of the Magic Empire’s stock chart.
Seven out of 10 US listings from China and Hong Kong this year have experienced similar unusual price action. That stands out at a time when IPO activity has been muted due to market volatility and falling public valuations.
Friday’s price action gives Magic Empire a market cap of $1.9 billion, according to data compiled by Bloomberg. Magic Empire, which provides underwriting and advisory services, did not immediately respond to a request for comment. The IPO was underwritten by Network 1 Financial.
For its part, AMTD Digital fell 9.9% on Friday. This is the third day of losses in a row that puts the stock 9.147% higher than its IPO price on July 15.
(Updates to add Burry’s tweet in the third paragraph. Previous updates have added price per share and market capitalization, latest stock moves, and AMTD Digital insights in the.) last paragraph.)
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