Shares of AMTD Digital (NYSE:HKD) surged higher by as much as 23% during intraday trading before closing higher by 10%. This comes after the digital solutions company reaffirmed in a press release that executives, including AMTD Group (NYSE:AMTD) Chairman Calvin Choi, would not sell any shares of HKD stock on the open market before August 2024. AMTD initially announced this on Aug. 16, 2022.
HKD held its initial public offering (IPO) in July 2021. Shares of the company surged as much as 21,000% higher to a market capitalization of $310 billion. A low float of 23.25 million shares may have contributed to the significant volatility. Today, the market capitalization is around $2 billion.
HKD Stock: Executives Promise (Again) Not to Sell Stock Before August 2024
Nasdaq had previously reported that 16 million shares could hit the market following a lockup expiration on Jan. 11. These shares would be priced at $7.80 a piece with a total value of $124.8 million. However, a lockup expiration does not mean that insiders will sell; rather it means that insiders can sell. Based on the press release, it appears that the insiders did not, and will not, sell their shares until August 2024. On Jan. 12, the day after the lockup, HKD fell lower by 16% to $11.17. Since then, all of the losses have been recovered.
So, what exactly does the company do? The company characterizes itself as a one-stop digital solutions platform that serves areas in Asia. Its platform services include finance, media, marketing, and investments. In addition, the platform is a part of AMTD’s SpiderNet Ecosystem, which encompasses industry organizations, Asia’s tycoon families, capital support, academic institutions, and industry leaders. The official AMTD website notes:
“AMTD serves as a super connector and digital accelerator for Asia-based entrepreneurs and corporates by connecting them to resources and technologies and providing them with access to our unique AMTD SpiderNet ecosystem.”
Meanwhile, HKD shareholders calling for a short squeeze may have to wait a bit longer. Barron’s reports that 266,260 shares were sold short as of Dec. 30, down by 8.77%. Based on a float of 23.25 million shares, short interest as a percentage of float would tally in at a low 1.1%.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.