AMTD International Among Few Gainers Monday in New York IPO

The Hong Kong company raised $174 million and enjoyed a 20 percent rise at its debut on the NYSE.

Author: Anthony Russo   

AMTD International Inc. (NYSE: HKIB), a Hong Kong investment banking firm, ended on a high note in New York on Monday, raising $174 million in its initial public offering.

The company opened at $8.91 per American depositary share and closed at $10.09 today, disrupting the trend of U.S.-listed Asian stocks dropping across the board.

"Today is an important milestone in AMTD's growth as we continue to leverage our deep relationships, industry knowledge and experience to connect Asian clients to the global capital markets," AMTD's chief executive officer, Calvin Choi, said in a statement today.


He continued, "This IPO will help us accelerate our strategy to expand into key global financial centers, diversify our business and further enhance the unique ‘AMTD SpiderNet' ecosystem of clients, business partners and investee companies."

AMTD sold 20.8 million in ADSs at $8.38 each, near the top end of the expected range of $8.10 to $8.40. Underwriters have a 30-day option to purchase up to an additional 3.1 million ADSs.

Securing the deal were AMTD Global Markets Ltd., Loop Capital Markets LLC, MasterLink Securities (Hong Kong) Corp. Ltd., Tiger Brokers (NZ) Ltd., ViewTrade Securities Inc. and Boustead Securities.

"The Company intends to utilize the net proceeds from the public offering to invest in AMTD's business and infrastructure expansion, fund potential acquisitions and investments, and use the remainder for general corporate purposes," the company said in a press release on Sunday.

AMTD ranks as Asia's largest independent investment banking firm and the largest firm for PRC regional banks and new economy companies, according to its press release on Sunday.

AMTD reported $38.9 million in revenue for its first quarter, which was double from that same period a year ago. The company's net income increased 70 percent year-over-year to $27.3 million, or 21 cents per ADS. In the full year 2018, AMTD doubled its revenue to $92.1 million from 2017. Its net income for 2018 was $66.9 million, or 30 cents per share.

While it was a productive Monday for AMTD, most Asian stocks dropped significantly. The United States and China moved further away from a deal on trade after U.S. President Donald Trump vowed last week to impose 10 percent tariffs on an additional $300 billion in Chinese imports. China retaliated today by saying it would stop buying U.S. agricultural products.