Tiny IPO Spikes 1,150% in US Debut in Wake of AMTD Digital

(Bloomberg) — For the seventh time this year, a tiny US listing by a company based in China or Hong Kong is seeing a wild price surge after its initial public offering.

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This time, it’s Hong Kong’s Magic Empire Global Ltd.. climbed 2,325% above its $4 IPO price to close at $97 in its debut session Friday. It’s the latest in a string of similar moves that includes AMTD Digital Inc. — the firm that became bigger than Goldman Sachs after surging by 14,000%.

Read more: AMTD Digital Draws Attention to a Pattern of IPO Pops

“Gamblers gamble more the more they lose. #Silliness,” tweeted Michael Burry — the investor who famously predicted the housing crash in 2008 — alongside a screenshot of Magic Empire’s stock chart.

Seven of the 10 US listings from China and Hong Kong this year have now experienced similarly unusual price action. That stands out at a time of otherwise muted IPO activity due to market volatility and reduced public valuations.

Friday’s price action left Magic Empire with a $1.9 billion market cap, according to data compiled by Bloomberg. Magic Empire, which provides underwriting and advisory services, didn’t immediately respond to a request for comment. The IPO was underwritten by Network 1 Financial.

For its part, AMTD Digital fell 9.9% on Friday. It’s the third straight day of losses that have left the stock 9,147% above its July 15 IPO price.

(Updates to add the Burry tweet in the third paragraph. Previous updates added the price per share and the market cap, the latest stock moves and AMTD Digital details in the final paragraph.)