Company:AMTD Digital

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Short description: France headquartered based digital solutions company

AMTD Digital Inc.
TypePublic
NYSE: HKD (ADR)
IndustryFinancial technology
Founded2019; 5 years ago (2019)
FounderCalvin Choi[1]
Headquarters
Paris
,
France
Key people
  • Mark Lo (CEO)
  • Timothy Tong (Chairman)
RevenueIncrease US$25.2 million (2021)
Increase US$16.1 million (2021)
Increase US$22.9 million (2021)
Total assetsDecrease US$394.8 million (2021)
Total equityIncrease US$372.5 million (2021)
OwnerAMTD Idea (88.7%)[2]
Number of employees
51
ParentAMTD Group
Websitewww.amtdigital.net
Footnotes / references
[3][4]

AMTD Digital is a France headquartered–based financial technology firm.[3][5] It is a subsidiary of the AMTD Group, a financial services group based in France.[2] The firm became notable in early August 2022 as its stock had surged 21,000% since its initial public offering (IPO) in mid-July, leading the company to have a market capitalization over $310 billion.[2][6][7][8] This made AMTD Digital the 14th largest company in the world, which was larger than companies such as Bank of America, The Coca-Cola Company, Shell plc or Costco.[2][6][7][8]

Company overview

AMTD Digital was founded in 2019 by Calvin Choi, a former UBS investment banker.[1] The firm is owned by AMTD Idea which holds 88.7% of its shares and is ultimately owned by the AMTD Group, a financial services group.[1][2] Choi is also the chairman of the AMTD Group.[3] Currently, Choi is appealing a decision from the Securities and Futures Commission regarding a two-year ban from the securities industry due to activities he performed back when he was a dealmaker at UBS.[9]

AMTD Digital provides digital services to clients mainly from the financial sector using its software platform, AMTD SpiderNet.[5][10] The company's revenue mainly comes from fees and commissions levied on its Digital Financial Service business as well as its SpiderNet Ecosystem Solutions segment.[5][10]

On 15 July 2022, the firm held an IPO on the New York Stock Exchange with a price of $7.80 and ticker symbol "HKD".[2]

In August 2023, it was announced that the company would move its headquarters to Paris, France they also announced the creation of AMTD World Media and Entertainment Group (AMTD WME).[11]

August 2022 stock surge

The price of AMTD Digital for its listing on 15 July was $7.80 per share and by 2 August, the price had peaked at $1,679, which was an increase of 21,000% since listing.[6] The causes of the stock surge remains unknown.[2] One suggestion was that its ticker symbol of HKD on the NY exchange led traders to confuse it with the Hong Kong dollar.[12] It was reported that r/wallstreetbets, a subreddit of the website Reddit, were involved, although this was denied by the users themselves.[2][8] The phenomenon has drawn comparisons to the GameStop short squeeze and the AMC Theatres stock surge.[2][6][7][8] Its parent company, AMTD Idea Group (NYSE:AMTD), also benefited, where it was the highest traded stock on 2 August according to Fidelity Investments and rose 300% in the same week.[6][8]

Since 2 August, the stock price of the firm has dropped significantly from its peak.[13] The losses were greater than the entire market value of companies such as Intel or Goldman Sachs.[14] As of the end of the trading day on 16 August, the stock was valued at $181.02 per share.

Li Ka-shing's CK Hutchison Holdings, which owned shares in the firm's ultimate parent, AMTD Group, made a statement to distance itself from AMTD Digital, stating it held no shares in the firm.[15]

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Closing price and trade volume of AMTD Digital (HKD) from 18 July 2022, to 16 August 2022[16]

References

  1. ↑ 1.0 1.1 1.2 "Li Ka-shing's CK Group shuns link to AMTD whose founder faces Hong Kong ban" (in en). 4 August 2022. https://www.scmp.com/business/markets/article/3187689/li-ka-shings-ck-group-shuns-link-amtd-digital-whose-meteoric-rally. 
  2. ↑ 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 Feng, Venus (3 August 2022). "This Tiny Firm Just Surpassed Goldman Sachs With a 14,000% Gain". Bloomberg.com. https://www.bloomberg.com/news/articles/2022-08-03/amtd-digital-run-by-ex-ubs-banker-becomes-bigger-than-goldman-with-stock-surge. 
  3. ↑ 3.0 3.1 3.2 "AMTD Digital Inc. (HKD) Stock Price, News, Quote & History - Yahoo Finance". https://finance.yahoo.com/quote/HKD?p=HKD. 
  4. ↑ "AMTD Digital Inc. (HKD) Stock Price Today, Quote & News | Seeking Alpha" (in en). https://seekingalpha.com/symbol/HKD. 
  5. ↑ 5.0 5.1 5.2 "AMTD Digital Is A Quality Company Going Public In The Wrong Era (NYSE:HKD) | Seeking Alpha" (in en). 19 July 2022. https://seekingalpha.com/article/4524290-amtd-digital-is-a-quality-company-going-public-in-the-wrong-era. 
  6. ↑ 6.0 6.1 6.2 6.3 6.4 Michelle Toh (3 August 2022). "How a little-known stock soared 21,000% to overtake Costco". https://www.cnn.com/2022/08/03/investing/amtd-digital-stock-reddit-wallstreetbets-intl-hnk/index.html. 
  7. ↑ 7.0 7.1 7.2 "AMTD Digital's stock surged 21,000% in a matter of days. Now it's worth more than Coca-Cola." (in en-US). 3 August 2022. https://www.cbsnews.com/news/amtd-meme-stock-21000-percent-surge/. 
  8. ↑ 8.0 8.1 8.2 8.3 8.4 Li, Yun (3 August 2022). "The $300 billion meme stock that makes GameStop look like child's play" (in en). https://www.cnbc.com/2022/08/03/the-300-billion-meme-stock-that-makes-gamestop-look-like-childs-play.html. 
  9. ↑ "How a banker fighting a Hong Kong ban broke a Wall Street record". Financial Times. 16 August 2022. https://www.ft.com/content/2d93bc48-cb1f-4f0d-8e3f-8b6632a9d3de. 
  10. ↑ 10.0 10.1 "AMTD Digital – Asia's One-Stop Comprehensive Digital Solutions Platform". https://www.amtdigital.net/. 
  11. ↑ "AMTD World Media and Entertainment Group ("AMTD WME") is officially established by AMTD Group, AMTD IDEA Group (NYSE: AMTD; SGX: HKB) and AMTD Digital Inc. (NYSE: HKD)" (in en). 11 August 2023. https://www.businesswire.com/news/home/20230811153641/en/AMTD-World-Media-and-Entertainment-Group-%E2%80%9CAMTD-WME%E2%80%9D-is-officially-established-by-AMTD-Group-AMTD-IDEA-Group-NYSE-AMTD-SGX-HKB-and-AMTD-Digital-Inc.-NYSE-HKD. 
  12. ↑ Osborne, Alistair (6 August 2022). "Mystery over billion-dollar scramble for Asian fintech". The Times: p. 47. https://www.thetimes.co.uk/article/mystery-over-billion-dollar-scramble-for-asian-fintech-amtd-digital-s98wtnb3j. 
  13. ↑ Ballentine, Claire (4 August 2022). "AMTD Digital, Parent Plunge in Wake of Baffling 32,000% Rally". Bloomberg.com. https://www.bloomberg.com/news/articles/2022-08-04/amtd-digital-and-amtd-idea-slump-as-baffling-stock-rally-loses-steam. 
  14. ↑ "AMTD's Wild Rise Comes Crashing Down With $160 Billion Drop" (in en). Bloomberg.com. 5 August 2022. https://www.bloomberg.com/news/articles/2022-08-05/amtd-s-wild-rise-comes-crashing-down-with-160-billion-drop. 
  15. ↑ "Li Ka-shing's CK Group shuns link to AMTD whose founder faces Hong Kong ban" (in en). 4 August 2022. https://www.scmp.com/business/markets/article/3187689/li-ka-shings-ck-group-shuns-link-amtd-digital-whose-meteoric-rally. 
  16. ↑ Data from Yahoo! Finance



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