Tiny IPO Spikes 1,150% in US Debut in Wake of AMTD Digital




  • In Business
  • 2022-08-05 20:08:41Z
  • By Bloomberg
 

(Bloomberg) -- For the seventh time this year, a tiny US listing by a company based in China or Hong Kong is seeing a wild price surge after its initial public offering.

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This time, it's Hong Kong's Magic Empire Global Ltd.. climbed 2,325% above its IPO price in its debut session Friday. It's the latest in a string of similar moves that includes AMTD Digital Inc. -- the firm that became bigger than Goldman Sachs after surging by 14,000%.

Read more: AMTD Digital Draws Attention to a Pattern of IPO Pops

Seven of the 10 US listings from China and Hong Kong this year have now experienced similarly unusual price action. That stands out at a time of otherwise muted IPO activity due to market volatility and reduced public valuations.

Magic Empire, which provides underwriting and advisory services, didn't 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. It's the third straight day of losses that have left the stock 9,147% above its July 15 IPO price.

(Updates the headline, plus the second paragraph and final paragraph, for Monday's market close. A previous update added AMTD Digital details in the final paragraph.)

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