BUSINESS Tiny IPO soars 1,150% on its US debut on...

Tiny IPO soars 1,150% on its US debut on the back of AMTD Digital

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(Bloomberg) — For the seventh time this year, a small publicly listed company based in China or Hong Kong is seeing a big price increase after its initial public offering.

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This time around, Hong Kong-based Magic Empire Global Ltd. rose 2.325% above its $4 IPO price to close at $97 in its debut session on Friday. It’s the latest in a series of similar moves that includes AMTD Digital Inc., the firm that grew bigger than Goldman Sachs after growing 14,000%.

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

“Players bet more the more they lose. #Nonsense,” tweeted Michael Burry, the investor who predicted the real estate crash in 2008, along with a screenshot of Magic Empire’s stock chart.

Seven of the 10 Chinese and Hong Kong US stocks this year have now seen similarly unusual price action. That stands out at a time of muted IPO activity due to market volatility and low public valuations.

Friday’s price action left Magic Empire with a market capitalization of $1.9 billion, according to data compiled by Bloomberg. Magic Empire, which provides subscription and advisory services, did not immediately respond to a request for comment. The initial public offering was backed by Network 1 Financial.

For its part, AMTD Digital fell 9.9% on Friday. It is the third consecutive day of losses that have left the shares 9.147% above their July 15 IPO price.

(Updates to add Burry’s tweet in the third paragraph. Previous updates added share price and market capitalization, latest stock movements, and AMTD Digital details in the last paragraph.)

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