Small IPO spikes 1,150% on US debut after AMTD Digital

(Bloomberg) — For the seventh time this year, a small U.S. listing of a company based in China or Hong Kong has seen a wild price jump since its initial public offering.

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This time it’s Hong Kong’s Magic Empire Global Ltd., which soared 2,325% above its IPO price in its debut session on Friday. It’s the latest in a series of similar moves that includes AMTD Digital Inc. – the firm that became bigger than Goldman Sachs after a 14,000% jump.

Read more: AMTD Digital draws attention to IPO model

Seven out of 10 US listings from China and Hong Kong this year have experienced such unusual price action. This comes at a time of otherwise muted IPO activity due to market volatility and depressed public valuations.

Magic Empire, which provides insurance and consulting services, did not immediately respond to a request for comment. The IPO was underwritten by Network 1 Financial.

AMTD Digital, meanwhile, fell 9.9% on Friday. It’s the third consecutive day of losses, which left the stock 9.147% above its July 15 IPO price.

(Updated headline, plus second paragraph and last paragraph, for Monday’s market close. Previous update added details about AMTD Digital in last paragraph.)

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