The IPO Buzz: AMTD Digital Scores a Moonshot in its NYSE Debut

Happy Friday indeed. AMTD Digital Inc. (HKD) popped in its NYSE debut on Friday, July 15, opening at 11:02 a.m. EDT at $13.00 – up 66.7 percent from its IPO price of $7.80. The stock extended that gain to score a moonshot – up more than 100 percent at $16.98. Trading in the stock was halted twice this morning due to volatility, MarketWatch reported. The stock was trading at $16.51 shortly before noon EDT – up 111.67 percent from its IPO price. AMTD Digital’s stock closed on Friday at $16.81, up 107.82 percent from its IPO price – ending its first day of public trading in the moonshot zone. (A moonshot occurs when a stock doubles its IPO price on its first day of trading.)

The Hong Kong-based FinTech’s IPO was priced Thursday night, July 14, 2022, when 16 million American Depositary Shares (ADS) were sold at $7.80 – 30 cents above the mid-point of the deal’s $6.80-to-$7.20 range.

AMTD International, Livermore Holdings and EDDID were the joint book-runners of AMTD Digital’s IPO, according to the final prospectus.

This IPO had been in the works since May 2021.

AMTD Digital was spun off by AMTD via the IPO. The ADS were issued by the Hong Kong-based parent of this digital financial services company, which has subsidiaries in Hong Kong and Singapore. The parent company is incorporated in the Cayman Islands.

The successful debut of AMTD Digital on Friday wrapped up a week when Asian companies dominated the sparse IPO Calendar. Nano Labs Ltd. (NA), the parent of a crypto-focused Chinese fabless chip maker, was priced Monday night, July 14, to trade Tuesday on the NASDAQ. Nano Labs’ stock ended its first day as a public company with a gain of nearly 5 percent. AMTD Global Markets, Maxim and Tiger Brokers were the joint book-runners.

Warrantee Inc. (WRNT proposed), a Japanese insurance services and marketing company, postponed its IPO on Monday afternoon, just hours ahead of its expected pricing. Network 1 Financial Securities was the sole book-runner. Some on the Street believe that Warrantee’s deal may get revived at a later date.

Intelligent Living Application Group (ILAG), a Hong Kong-based maker of high-quality locksets, priced its IPO on Tuesday night, July 12, at $4.00. The stock closed its first day of NASDAQ trading on Wednesday, July 13, at $6.12, up 53 percent from its IPO price. Network 1 Financial Securities was the sole book-runner. Since then, Intelligent Living Application Group’s stock has given back its first-day gains; it was trading at midday on Friday at around $2.47, down 38.3 percent from its IPO price..

Treasure Global (TGL proposed), the New York-based parent of a Malaysian payments app, was on the IPO pricing roster for Wednesday night, July 13, to trade Thursday on the NASDAQ. But no pricing confirmation was available next day. EF Hutton was the sole book-runner.

Meanwhile, two sizable IPOs led by big banks withdrew their registrations this week – The Fresh Market Holdings (TFM proposed) and Justworks Inc. (JW proposed).

In the SPAC world, big news broke on Monday afternoon. Bill Ackman’s Pershing Square Tontine Holdings (PSTH proposed), the largest SPAC on record, said it would liquidate its trust and return $4 billion to investors.

Next week’s IPO Calendar lists just a few tiny deals so far.

Stay tuned.

(For more information, please see our IPO Calendar – Click on the company’s name and the hyperlink will take you to the IPO Profile, which includes a link to the prospectus.)

(Never trade on proposed symbols. You might wind up owning something on the OTC Bulletin Board.)

Disclosure: Nobody on the staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The staff does not issue advice, recommendations or opinions.

Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums), is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute change.