– Those who benefit from this are probably the facilitators. I counted on it this morning. They could have earned four billion dollars, says Robert Næss.
– Like winning the Lotto, in other words?
– More than that! It’s not often you win NOK 40 billion in Lotto, laughs Næss.
The organizers of the IPO of AMTD Digital, i.e. those who helped bring in investors in advance, received 2.4 million shares themselves, which they have the opportunity to sell before 15 August.
AMTD Digital’s IPO price was $7.80 per share. The relatively unknown company from Hong Kong was launched on the New York stock exchange on 15 July, i.e. just over two weeks ago.
On Tuesday, the share price was at its highest at 2,350 dollars.
– FOLLOWS: Investment director Robert Næss at Nordea is fascinated by AMTD Digital’s entry on the stock exchange in New York. Photo: Kåre Breivik / TV2
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Gigantic
When the stock exchange in New York closed on Tuesday, it was at 1,679 dollars. It is this price that Næss used as a starting point for the calculation he did for fun on Wednesday morning.
– This has probably never happened before, says Nordea’s investment director.
The company’s total market value was suddenly up to $310 billion, making AMTD Digital a bigger company than Coca-Cola and Bank of America, according to FactSet.
In fact, AMTD Digital was suddenly bigger than 480 of the 500 companies on the S&P500 index.
According to CNBC, AMTD Digital had a turnover of just $25 million last year. The company offers digital business solutions to companies.
The next GameStop
We ask Robert Næss if he can explain why the share price has taken off completely.
– Both yes and no. Most likely no. The dream of many small investors is to find a share that rises very much. There is always talk of finding the next GameStop, says Næss to TV 2.
Normally you choose companies within crypto or areas where there is currently low earnings, but enormous potential, Næss explains.
– That a stock like AMTD Digital should go is a mystery.
Nordea’s investment director points out that the company only has 50 employees, but earned ten million dollars last year and was priced at 30 times its earnings when it went public.
– One thing that can explain that is the ticker, (the letter abbreviation that is the company’s ID on the stock exchange, journ.anm.). This company has the same ticker as is used for the Hong Kong dollar. It is actually conceivable that someone has acted incorrectly, then the stock rises and then people jump on it.
– It will be a “hype”, simply?
– Yes, then it will be like a pyramid scheme. It only applies to does not be a system man in the door.
Thanks to the investors
AMTD Digital is compared with last year’s GameStop historybut as CNBC writes in a title: This is “the stock that makes GameStop look like child’s play”.
On Wednesday, the stock opened at $1,900. At the time of writing, it is at just under 1,100, but the fluctuations are enormous.
Trading in the stock has already been halted nine times due to the volatility.
The company has released a message of thanks to the investors, where it points out that there is “very active trading of the share” and that it is in “the initial stabilization phase”.
The company says, according to Market Watch, that it is closely monitoring abnormal circumstances, but is currently not aware of any such.
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