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AMTD Digital
France headquartered based digital solutions company From Wikipedia, the free encyclopedia
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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]
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Company overview
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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] Choi received a two-year ban from the securitie from the Securities and Futures Commission 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]
World Media and Entertainment Group
AMTD World Media and Entertainment Group was created in 2023 to oversee on the entertainment, hospitality and media divisions of the group.[11]
The company is currently planned to be part of a business combination agreement which will see ownership of the company split between AMTD Digital and Black Spade Acquisition II Co.[12] Under the acquisition the company will continue to licence The Art Newspaper and L'Officiel brands from AMTD Group.[13]
WME holds 100% ownership of The Art Newspaper, Dao by Dorsett hotels, iclub AMTD Sheung Wan hotel, L'Officiel and L'Officiel Coffee.[14][15]
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August 2022 stock surge
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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.[16] 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.[17] The losses were greater than the entire market value of companies such as Intel or Goldman Sachs.[18] 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 specify that CK Hutchison has no holdings in AMTD Digital, stating it has an approximate 4% holding in AMTD Group instead.[19]
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References
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