AMTD idea (NYSE:AMTD) was trading higher today before falling into the red. AMTD shares are currently down more than 10%. The company was honored after its subsidiary, Digital AMTD (NYSE:HKD), gained over 30,000% following its IPO, or IPO. HKD was initially priced at $7.80 when it debuted; today it is trading in the $1,300 range with a record price of $2,555.
So what can explain the extreme appreciation of stocks? Well, even AMTD Digital is a bit confused, stating:
“To our knowledge, there have been no material circumstances, events or other matters relating to the business and operational activities of our company since the date of the IPO.”
Additionally, AMTD Idea owns 97.1% of AMTD Digital’s shares outstanding as of July 15. yahoo reports that there are 185.04 million shares of HKD outstanding, while the public float is only 19.05 million shares. As a result, the low float can be attributed to HKD price appreciation as retail investors drive the price up on low volume.
Another way to think about it is that HKD holders refused to sell, which forced potential buyers to raise the price. Last Tuesday, HKD traded above $2,500 on low volume of just over 250,000 shares.
Meanwhile, HKD underwriters are expected to gain massively. They got a green shoe option, which means they can exercise options to buy 2.4 million shares at $7.80 apiece. The underwriters will be able to sell these shares on August 15.
Meanwhile, AMTD has tracked the ride. Shares of the company are up more than 400% this month. With that in mind, let’s take a look at who is betting big on AMTD stocks.
5 investors betting big on AMTD stocks
AMTD is not very popular with institutional investors. Whale Wisdom reports fewer than 10 own shares in the financial company. Let’s take a look at the top five investors:
- AMTD Group: 178.76 million shares. AMDD’s position is accurate as of Q4 2020. At the time, it sold 21.24 million shares.
- Calvin Choi, Founder and Chairman: 62.62 million shares. Choi’s position is accurate as of Q4 2020. Additionally, Hong Kong security regulators are seeking to enforce a 2-year industry ban on Choi for “professional misconduct”.
- city of the century: 21.84 million shares. Century’s position is accurate as of Q4 2021. During that time, it purchased 140,186 shares.
- Morgan Stanley (NYSE:MRS): 1.28 million shares. Morgan Stanley sold 1,000 shares in the first quarter.
- Investnet: 21,946 shares. Envestnet has already filed its Q2 13F form and purchased its entire stake during the second quarter.
At the date of publication, Eddie Pan did not hold (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.