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A company does ‘magic’ and rises 2,300% in its debut on the stock market

A company does ‘magic’ and rises 2,300% in its debut on the stock market

These are strange times for IPOs. If a small Hong Kong company, AMTD Digital, gathered a few days ago a a 21,400% increase in the share price In two weeks without any apparent reason, surpassing Coca-Cola in capitalization, this Friday a company that debuted on the Nasdaq scored a revaluation of 2,325% in a few hours.

there is luck Magic world empire, a firm also from Hong Kong created in 2016 that offers financial advisory services in the area decided to go public last May, aiming for a collection of 20 million dollars. So, the price was set for his launch 4 dollars per sharebut for unknown reasons he was fired immediately.

First, at 50 dollars. Then 90. He was trading for less than three times when he reached a the highest level of $235.95, a 5,800% increase on its initial price. Then the decline began to finish closing at 97 dollars, that is, scoring a revaluation of 2,325% in five hours. And not only that: sa after hours It reached $192, which could be signed at the opening on Friday if what happened this week with AMTD Digital is repeated.

At the end of Friday, Magic Empire Global, was born $2.1 million in revenue in 2021, it registered a market capitalization of 1,940 million (it was 4,700 million), putting it on par with international firms such as Coursera and surpassing the stock market value of Manchester United or Virgin Galactic.

Trading platform Fidelity noted that Magic Empire Global was the sixth most traded security on its platform on Friday, receiving 5,044 buy orders and only 474 sell orders. Despite everything, the total amount registered the action was limited to 664,000 dollars, huge for a value of this amount but far from the big companies on the American stock market. Its volume on Friday is on a par with Biogen and surpasses Garmin, Regeneron or Whirlpool, but it was ten times less than United Airlines or HP, and a hundred times less than Ford and Warner Bros. AMD was the most traded of the day,. with a volume of 93.6 million dollars.

The question now is whether Magic Empire Global will repeat what it suffered AMTD Digital since it started in mid-July. From an all-time low at $18.29 to an eight-session high later at $2,555. Out of the 15 trading days of AMTD Digital, it tripled its value in one and doubled in three others. Since Wednesday it has not stopped falling, but is still 3,843% above its low.

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