The stock of AMTD International Inc. (HKIB) declined in the current market after the Company announced in the press about its acquisition of AMTD Digital and change of ticker symbol. The stock of HKIB values at around $3.44, losing more than 32% from the previously closed value. At the end of the previous trading session, the stock closed at $5.10. The stock volume traded in the last trading session was around 47.99K shares.
The reason for the stock decline
AMTD International Inc. (HKIB), a subsidiary of AMTD Group Company Limited (AMTD Group), announced today that it has engaged in share purchase agreements with certain shareholders of AMTD Digital Inc.
AMTD International will purchase a majority share in AMTD Digital under the Share Purchase Agreements. The Company will now have a comprehensive financial services infrastructure and licenses suite. It is a one-stop digital solutions platform in Asia with a global reach, spanning digital media, content, and marketing. It also includes L’Officiel Inc SAS, an international fashion media group and digital ecosystems with an extensive network of ecosystem members and alliance partners working closely with AMTD Gro.
AMTD International Inc. (HKIB) is a leading Hong Kong-based financial institution organization connecting Asian enterprises and investors to worldwide capital markets. The one-stop financial service concept meets clients’ diversified and interrelated financial requirements throughout their lives.
The Company also previously announced that it seeks to rename itself AMTD IDEA Group, subject to EGM authorization. The ticker symbol for the Company’s ADSs will change to AMTD on January 31, 2022. The suggested ticker modification will not impact shareholder rights or the Company’s operations or finances.
The effect on the stock decline
As soon as the news hit the market, its stock plunged in the market. The drop seems temporary and expects to regain its value once the decision is entirely in practice.
Conclusion
The investors should focus on the outlook of the Company, their plans for the metaverse, and innovation in the technology.
