Magic Empire Global stock price goes up by 6,149% before crashing 95% from its high

The company is a financial services provider in Hong Kong and had recently come out with an initial public offering.

Magic Empire Global stock price goes up by 6,149% before crashing 95% from its high
The shares of Magic Empire Global are listed on Nasdaq and trade under the ticker MEGL.

Billionaire stock market investor! Who will not want to be a billionaire by investing in the stock market? Markets may provide such an opportunity but may not sustain it for long. Two founders of a little-known Hong Kong investment bank achieved the status of billionaires recently but the sharp price movement downward saw the fortune collapse in quick time.

Magic Empire Global, a financial services provider in Hong Kong, recently came out with an initial public offering (IPO) at a price of $4.00 per share. Since its listing on August 5, the stock price of Magic Empire Global soared as much as 6,149%, giving it a market value of $5 billion at one point.

That meant co-founders Gilbert Chan and Johnson Chen had stakes worth $1.8 billion and $1.3 billion, respectively, according to data compiled by Bloomberg. The duo together controls about 63% of the firm.

On Tuesday, August 9, the stock price of MEGL crashed 89% from the previous day’s closing price and settled at $12.32.

The roller coaster ride continues and the stock is showing high volatility. In the pre-market trading session on Wednesday morning, MEGL is up by almost 20 percent quoting a price of $14.75. The shares of Magic Empire Global are listed on Nasdaq and trade under the ticker MEGL. The 52-week high low price range of MEGL is $11.71 – $249.94.

Also Read: International mutual fund schemes are still not open for investment – Here’s why

Magic Empire Global principally engages in the provision of corporate finance advisory services and underwriting services including IPO sponsorship services. The company caters to small and medium-sized companies in Hong Kong and created Giraffe Capital Ltd., Magic Empire’s operating entity.

Recently, the stock price of AMTD Digital showed similar momentum and at one point of time had become bigger than Goldman Sachs Group and many other top-notch global financial firms despite reporting revenue of just $25 million for the year ended April 2021.

Also Read: US Stock Market: Is it the right time for long term investors to invest now?

IPOs and the listing of stocks on the first day have shown such speculative activities among investors and traders. At least five other companies, including Ostin Technology Group Co., Golden Sun Education Group Ltd., and Intelligent Living Application Group Inc., have posted intraday gains of 395% or more on their first day of trading.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

Photos