This Company with 51 Employees Was Valued Higher Than Facebook

The frenzy behind AMTD Digital and its 12,000% rise

The stock market continues to amaze me every day with how unpredictable it can be. How can companies seemingly slip through in a market that depends so heavily on fundamental analysis and growth metrics?

In this article I will comprehensively breaking down everything you need to know about AMTD Digital and its meteoric >$400b valuation.

At the time of writing this article, AMTD Digital’s market cap is over $150 billion, valuing it higher than companies like Morgan Stanley, Intel, and CVS.

HKD goes public, worlds most expensive underwriting fee

AMTD Digital staged its IPO in the middle of July, 2 weeks ago. The company listed with the New York Stock Exchange, and shares hit the market at $7.80, giving HKD an initial market cap of $125 million.

Although a seemingly smooth IPO, the companies SEC filing reveals an aspect of this IPO is a time bomb, capable of defrauding investors.

The problem starts with HKD being based out of a foreign country. Listing a foreign company on a US stock exchange requires a type of legal “loophole”: American Depository Receipts.