Chinese Investment Bank Shines in Its US Debut

The AMTD International, which is based in Hong Kong, is an investment bank and an asset management firm that commenced trading on New York’s Bourse on the opening day of this week. The investment bank that goes by the ticker symbol of HKIB registered concrete gains at the close of the very first day on the New York Stock Exchange (NYSE). By the end of the day when the market closed, AMTD International’s shares had gained more than 20% of their initial value and settled at a little over $10. The price introduced at the initial public offering (IPO) was $8.38 per share. The IPO included 20,759,700 American Deposit Shares (ADSs).

The underwriters have been offered an option by the firm to buy about 3,113,955 of additional ADSs, which will cover over-allotments. The trading of AMTD International’s shares on the NYSE makes it the first ever homegrown company from Hong Kong to be listed on the NYSE. Moreover, it is also the very first Asia-based private investment bank to have been listed inside the US.

Besides being a huge milestone for the bank, it is also a substantial development in connecting global capital markets to Asian clients.  The move will help the bank achieve accelerated growth over the next few years as they diversify their financial pools and reach global financial capitals.

The parent company, SpiderNet, is a well-knit network of business partners, clients, and investee firms, and it aims to place AMTD right in the middle of that interconnected ecosystem to serve as a super-connector.  The IPO has served it well in its goals to do so.

If the underwriters go ahead with the overallotment option provided to them, the expected gross proceeds from the IPO will touch 200 million dollars. The proceeds are intended to be used by the company to finance acquisitions, infrastructure investments, as well as to be invested into the core business of AMTD.

The company has been performing quite well in the recent past with its first-quarter revenue this year crossing $39 million. The core business activities of the AMTD involve investment banking, strategic investment, and asset management. It is the largest independent asset manager in Asia at the moment with assets under management worth $2.6 billion.