Why Is Magic Empire Global (MEGL) Stock Up 2,000% Today?

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On an otherwise down day in the market, some stocks are seeing incredible interest. Magic Empire Global (NASDAQ:MEGL) is one of these names; MEGL stock made its debut today to the cheer of investors. As of this writing, shares are increasing more than 2,000% on its first day of trading.

Magic Empire Global announced the pricing of its initial public offering (IPO) yesterday, pricing 5 million shares at $4 per share. This capital raise of $20 million — for a company with revenues of less than $17 million — is significant. However, the incredible surge in shares to the $90 level has raised questions as to whether the IPO was misplaced.

In general, while IPOs tend to be priced attractively to ensure some capital appreciation for early investors, that doesn’t seem to be the case with MEGL stock. So, let’s dive into the potential drivers of this high-flying stock.

Why Is MEGL Stock Soaring Today?

Hong Kong-based Magic Empire Global is a rather interesting company to assess. The financial services company focuses on underwriting and corporate financial advisory services. Accordingly, many investors may draw parallels between Magic Empire and AMTD Digital (NYSE:HKD), which also recently skyrocketed following its IPO.