AMTD Digital Inc. has set the terms for its initial public offering worth up to $131.2 million, set for next week in New York.
The digital solutions spin-off of AMTD Group is offering 16 million of its American depositary shares at $6.80 to $8.20 per share. It is expected to float its ADSs on the New York Stock Exchange under the ticker symbol "HKD" on the week of June 14.
Underwriters on the deal are AMTD, Loop Capital Markets, Maxim Group LLC, and Livermore Holdings Ltd.
AMTD Digital calls itself the "fusion reactor at the core of the AMTD SpiderNet ecosystem." The digital solutions platform provides "tailored solutions with a collaborative overlay" including financial services, digital media, content, marketing, and investments, according to the prospectus.
AMTD Digital generates revenues from fees and commissions and has enjoyed fast growth since the launch of SpiderNet in December 2017, it said. 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, according to the filing.
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.
Some of AMTD Digital's competitors are Tencent's WeBank and Ant Financial's MyBank in the digital banking sector, Zhong'an Online in the insurance industry, and the digital ecosystems built by industry leaders Amazon, Tencent, and Alibaba.
Funds from the IPO will be used for future license applications, acquisitions, IT infrastructure, and human resources; to support expansion, and for general corporate purposes, AMTD Digital said.