AMTD Idea (NYSE:AMTD) and AMTD Digital (NYSE:HKD) are both jumping in pre-market trading today, with AMTD stock soaring more than 400% to $11.61 at one point and HKD stock advancing 14.6% to $799. Hong Kong-based AMTD Idea is an investment bank, while its subsidiary, AMTD Digital, has created digital tools that perform functions related to financial services.
One of AMTD Digital’s tools, AMTD SpiderNet, is being labeled by some as a metaverse. InvestorPlace contributor Dana Blankenhorn reported that SpiderNet seeks “to connect all AMTD’s financial operations and intellectual property into a controlled digital ecosystem.”
Since AMTD Digital launched its initial public offering (IPO) on July 15, HKD stock has been one of the top movers in the market, rocketing from $27.80 on July 18 to $742 yesterday.
AMTD Idea’s shares have previously undergone some volatility as well in recent weeks. On July 22, AMTD stock rallied more than 100%, climbing to $2.20 from its close of $1.08 on the previous trading day.
On July 15, AMTD IDEA announced that AMTD Digital had successfully priced an IPO of its American depositary shares on the New York Stock Exchange. The IPO price was $7.80 per share, and AMTD Digital’s gross proceeds came in at nearly $125 million, excluding underwriters’ options.
AMTD Stock’s Letter to Investors
In an open letter to its investors published today, AMTD Digital wrote that it was unable to offer an explanation for the wild gyrations in its share price. The firm added that it is “monitoring the market closely for any unusual trading activities or abnormalities.”
The headline of the note was “AMTD Digital Inc.: Thank you note to investors and our response to our latest ADS price performance.” The company explained that it wanted to show “its appreciation of support from the investor community for the successful completion of its [IPO.]”
On the date of publication, Larry Ramer held no positions in any companies mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.