Initial public offerings or IPOs are known as a great way for investors to get great returns in a relatively short time. On average, they can bring investors 40% within the first 3 months. The reality is, however, a lot of the time the price goes back down and the crucial thing is knowing when to sell. Once the initial funding stages are out of the way, IPOs can be a great way for companies to sell their shares on the open market and raise more capital to continue their growth. Unless you follow the latest obscure IPOs it’s unlikely you’ve asked “is Magic Empire Global publicly traded?” But the answer is yes, and it grew 6,000% from the opening price in a matter of days! Read on to find out about Magic Empire stock IPO and all the important information about MEGL IPO date and price.
After two record-breaking years of IPO activity in the US, with 480 IPOs in 2020 and 1035 in 2021, the number of companies that went public dropped dramatically in 2022. So far there have been only 137 IPOs in the US as of August 12, 80% less than on this date last year.
Some high-profile IPOs like Chime and Discord were postponed until later in the year and some might get canceled. Even though so many recent IPOs failed miserably, drew the Downward Mouse Ass pattern on the graph, and became penny stocks, there is still some very interesting activity happening here and there.
Magic Empire Global History
Magic Empire Global Limited, or MEGL, is a Hong Kong-based investment bank and financial services company that provides advisory and underwriting services for corporate clients. MEGL has been operating since 2016. In 2021 the company generated a profit of just over 200k on revenue of $2.2 million.
Perhaps that was enough for the management to ask themselves, “when is MEGL going public?”
Read on to find out about Magic Empire IPO 2022 and other key info.
MEGL Public Listing Key Data and IPO Date
MEGL IPO Date: August 5, 2022
IPO stock price: $4
Valuation at IPO: $5 billion
Market cap (29/8/22): $126,2 million
CEO: Johnson Sze-hon
Category: Financial services
Magic Empire launched its IPO on Nasdaq on August 5, 2022 with the stock symbol MEGL.
The MEGL IPO price opened at $4 as announced on Thursday 8/4. However, on Friday the stock reached $235, closing the day at $97. On Monday the stock price jumped another 50% but soon reversed, closing the day 50% down from the highs. Now the stock trades at under $10, just a week after their IPO date.
Being a fairly small company, Magic Empire sold 5 million shares, raising $20 million in the offering. This way, the company’s market valuation reached $4.7 billion at its highest point.
Considering the low float, it appears that retail traders took active part in driving up the stock price, as was evident on social media.
Chairman Gilbert Chan Wai-ho and CEO Johnson Sze-hon, who own most of Magic Empire with a combined stake of around 63%, saw their net worth explode and then, well, explode but in a bad way. The company’s market cap reached 2.34 billion on Monday, August 8, but now it’s at 184 million.
They launched a traditional IPO instead of merging with a special purpose acquisition company (SPAC), a black-check company created solely for the purpose of merging with a company to help go public. This makes the IPO process cheaper and easier but has its downsides like giving up too much equity.
So What About Investing Now?
While MEGL IPO was not a success, it was fun while it lasted and even more fun for those who sold their shares at over $200. Another Hong Kong company, AMTD Digital Inc. also had an IPO in July and its price gained 14,000%, momentarily becoming bigger than Goldman Sachs.
What the IPOs like these demonstrated is that IPO bubbles are alive in 2022. While we see this pattern a lot, perhaps now is not a good time to invest in IPOs unless you just want to play or have some insider information. It would be more appropriate to call this speculation rather than investing Is it possible? Yes? Is it likely? No.
What the current market is showing is that indulging in stock picking and especially IPOs is not as effective as having a diversified portfolio of stocks and ETFs, or check out TTFs from Gainy. These are curated stock collections around a specific theme or investment strategy.
Check out our IPO section to look at other scheduled IPOs. If you want to find companies that match your interests, investment goals and portfolio, try Gainy for some great IPO investment ideas, as well as established blue-chip companies and a variety of other assets.
When is the Magic Empire Global IPO date?
The MEGL stock IPO date was August 5, 2022. The Hong-Kong based financial services company was listed on Nasdaq with the stock symbol MEGL.
Is MEGL a public company?
Yes, when a company launches an IPO (or initial public offering) this means they become a public company whose shares are traded on the stock exchange.