On August 2, Eastern Time, the share price of Chinese concept stock AMTD Digital (HKD) continued to surge during the session, once rising by more than 240% during the session.

As of the close, AMTD Digital's gains had dropped to approximately 126.28%, reported at US$1,679 per share, an increase of 215 times from its initial price of US$7.8 per share.

It is worth noting that AMTD Digital’s latest market value is US$310.7 billion (approximately 2.098 billion yuan), exceeding that of leading Chinese concept stocks Alibaba (US$245.3 billion), JD.com (US$93.3 billion), Pinduoduo (US$61.9 billion)

US dollars), NetEase (US$59.5 billion), Baidu (US$46.4 billion) and other leading Chinese concept stocks.

AMTD Digital was listed on the U.S. stock market on July 15, EST, with an issue price of US$7.8 and raised approximately US$125 million (approximately RMB 845 million). AMTD Digital has only been listed for 13 trading days, so why has its stock price soared?

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Is Li Ka-shing’s concept behind the surge?

AMTD Digital was listed on the U.S. stock market on July 15, Eastern Time, with an issue price of US$7.8 and raised approximately US$125 million (approximately RMB 845 million), becoming the largest Chinese concept stock IPO on the New York Stock Exchange so far in 2022.

In the more than 10 trading days after its listing, AMTD Digital's stock price started a wild ride.

As of the close of the last trading day in July, AMTD Digital's share price soared to US$400.25.

Surprisingly, this may only be the beginning.

As of the close of trading on August 2, Eastern Time, AMTD Digital's share price has soared to US$1,679 per share.

In just 13 trading days, AMTD Digital's market value reached US$310.7 billion, surpassing Alibaba, the leading Chinese concept stock, by US$245.3 billion.

Equivalent to 5 Pinduoduo (PDD, stock price $48.98, market value $61.9 billion).

AMTD Digital is the Asian digital financial subsidiary of AMTD Group. Its English name is AMTD Digital Inc. It was spun off from AMTD International, a financial services company also listed on the New York Stock Exchange.

AMTD Group was established in 2003 and is involved in financial services, digital technology, arts, culture and entertainment. One of its founding shareholders is Li Ka-shing's Cheung Kong Holdings and Hutchison Whampoa.

Public information shows that AMTD Group currently holds 86.7% of AMTD International, but its shareholding structure has not been disclosed. Therefore, in this myth of Chinese concept stocks, it is impossible to know exactly the amount of wealth Li Ka-shing gained in this capital carnival.

If its shareholding ratio exceeds 25%, the current value will reach 100 billion yuan.

Judging from the shareholding structure of AMTD Digital before its IPO, AMTD Group was the controlling shareholder of AMTD Digital at that time, with a shareholding ratio of 72.2%; AMTD Education and AMTD Real Estate both held 16.2% of the shares.

; AMTD International holds 14.4% of the shares.

In addition, the company also introduced Wireless Power Investment Company and Value Partners Greater China High Yield Fund.

The "Daily Economic News" reporter also noted that AMTD Digits' shareholders also include Tongjiayuan Fund, one of the largest independent asset management companies in the Greater Bay Area, Value Partners, one of Asia's largest independent asset management companies, and Jiayu Fund founded by former Alibaba CEO Wei Zhe, etc.

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Shun Zhiyong, a strategist at Baihui Securities in Hong Kong, China, told the "Daily Economic News" reporter via WeChat: I think (the skyrocketing rise of AMTD Digits) may be related to some of Li Ka-shing's concepts. After all, Li Ka-shing's name is quite famous in Asia.

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Because the company is now listed in the United States, American investors may also have some expectations.

AMTD Digital's valuation is already higher than its peers, so if investors are interested in this company, they must be aware of the risks.

It is worth noting that with the help of many well-known shareholders, the company has completed multiple investments before.

The prospectus shows that in fiscal year 2019, fiscal year 2020 and fiscal year 2021 (as of April 30), AMTD Digital’s revenue mainly comes from fees and commissions from the digital financial services business and the Spider Ecosystem Solutions business.

The spider web ecosystem mainly plays a role in connecting and re-enabling resources from multiple parties.

The company said that partners from different fields such as the digital and traditional financial industries, technology industries, and academic institutions can be connected in the Spider Ecosystem. The system can provide customers with capital, technology, guidance and other resources to accelerate and enhance

Digital transformation of its business.

Image source: AMTD Digital's prospectus In terms of performance, the prospectus disclosed that in the fiscal years 2019, 2020, and 2021 as of April 30, AMTD Digital's customer contract revenue was HK$14.554 million, HK$168 million, and HK$1.96 million respectively.

HK$100 million; profits for the same period were HK$21.544 million, HK$158 million, and HK$172 million respectively.