AMTD Digital Inc., the Hong Kong digital solutions spin-off of AMTD Group, has filed to trade its American depositary shares in New York.
The company provides digital financial services, digital media, content, and marketing, and digital investments, as well as connects to AMTD's SpiderNet ecosystem for Asia-based entrepreneurs and corporates. SpiderNet and digital financial services generate the majority of AMTD Digital's revenues, the company said in its prospectus filed Thursday.
For the nine months through January 2021, AMTD had revenues of $18.8 million, up 9% year-over-year. Net profit during the period widened 19% to $14.2 million, the company said.
Among its growth drivers, AMTD Digital listed the increasing demand for digital financial services, favorable government initiatives, the increased acceptance of online transactions, improvements in technology, and the need for innovation in the digital insurance industry.
"We plan to use the net proceeds that we receive from this offering to fulfill the capital requirements for future license applications and acquisitions, IT infrastructure and human resources, to support our business expansion and growth, and for general corporate purposes," AMTD said in its filing.
Underwriters on the deal are AMTD, Loop Capital Markets, and Maxim Group LLC.
AMTD Digital hopes to float its ADSs on the New York Stock Exchange under the ticker symbol "HKD." The terms of the deal are yet to be disclosed.
The filing sent AMTD International Inc. (NYSE: HKIB) shares up nearly 5% intraday Friday, to $6.87 apiece. The independent investment banking firm of AMTD Group became publicly traded in New York in August 2019 in a deal worth about $200 million.