We’ve had one little inkling of risk appetite returning to markets and all hell has broken loose in meme stocks.
The latest is AMTD Digital, which is a Hong Kong metaverse stock with the ticker HKD (a confusing one for FX traders, no doubt). It debuted last week at $7.80 per share and is now trading at $2300 as it goes straight parabolic today.
The company put out a presss release today to say it had no idea what was going on.
“During the period since our initial public offering , the Company noted significant volatility in our ADS price and, also observed some very active trading volume. 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”
It also noted the windfall the underwriters stand in line to recieve.
“The underwriters have been granted a green-shoe option, exercisable within 30 days from the date of the final prospectus, to purchase up to an aggregate of 2,400,000 additional ADSs at the public offering price,” it says.
Now there might be some caveats around that as it’s usually something that’s used in order to keep prices up. In any case, those shares are currently worth $5.52 billion, which would make for quite a nice quarter for whoever those underwriters might be.
As for the entire company, it’s market cap is now nearing $400 billion, which puts it right between Exxon and Wal-Mart.
The gain puts Li Ka-Shing close to Elon Musk’s net worth.