Tiny IPO Peaks 1,150% in US Debut in AMTD Digital’s Wake

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(Bloomberg) — For the seventh time this year, a small U.S. listing of a company based in China or Hong Kong is seeing a wild rise in price after its initial public offering.

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This time it’s Magic Empire Global Ltd. from Hong Kong. Climbed 2.325% above the IPO price during its debut session Friday. It is the latest in a string of similar moves, including AMTD Digital Inc. – the company that grew larger than Goldman Sachs after rising 14,000%.

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Read More: AMTD Digital Draws Attention to Pattern of IPO Pops

Seven out of 10 US listings out of China and Hong Kong this year have now seen similar unusual price action. This is noticeable at a time of otherwise muted IPO activity due to market volatility and reduced public valuations.

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

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AMTD Digital, for its part, was down 9.9% on Friday. It is the third consecutive day of losses that have left the stock 9.147% above its July 15 IPO price.

(Updates the headline, plus the second paragraph and the last paragraph for Monday’s market close. An earlier update added AMTD Digital details to the last paragraph.)

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