The financial group behind AMTD Digital's IPO is facing regulatory scrutiny over previous deals made.
JULIE HYMAN: AMTD Digital. This was a meme stock that got a lot of attention. It came public in Hong Kong. Now the parent company is under regulatory fire over previous deals it had arranged, or I should say, the financial group behind that IPO. AMTD originally soared over 32,000% following its public debut. It briefly reached a market cap of over $400 billion in August.
Now, Bloomberg is reporting that Hong Kong securities watchdog is now looking into this company. It actually predates, this inquiry predates the US listing of AMTD Digital. So it's been a while in that IPO even happened, even despite that they were looking into this. The company, by the way, had just $25 million of revenue in the year ending in April 2021. So, like, the sales to market cap ratio in that was quite something.
BRIAN SOZZI: Every time I see this, I have to remind myself, AMTD is not the Ameritrade ticker symbol. Obviously, TD Ameritrade is no longer traded. I guess, maybe I'm showing a little bit of my age here, but nonetheless, that's just the reality of it.