Next Digital Ltd media received support from fellow pro-democracy supporters and gained a 400% jump in shares. The unforeseen incident got Next Digital on Securities and Futures Commission (SFC)’s watch, though data investigations immediately debunked the suspicions. Soon after, the public went even further to back up Next Digital through bulk buying the company’s printed newspapers, Apple Daily.
How did the massive support for Next Digital Ltd start?
Jimmy Lai, the man behind Next Digital’s Apple Daily newspaper, is a renowned pro-democracy activist. Recently, he was under arrest for violation of Hong Kong’s new national security law. Authorities released him on bail last Wednesday, and following the news, his company’s shares rose to 42% on Friday morning.
A sudden surge in stocks, Hong Kong’s Securities and Futures Commission (SFC) raised suspicions
SCMP previously has reported the series of ups and downs Next Digital went through. The fiercely competing online media market pushed the company’s advertising revenue down. Next Digital recorded an 11% drop to HK $1.2 billion in revenue by March 31. Net loss also weakened by 23% to HK$417 million.
The spike in shares started two days after Jimmy Lai’s arrest. Public’s support rocketed Next Digital shares to 1,200%. The pro-democracy supporters also brought in a surprising result in the Next Digital, TVB, and Tom Group’s stock rally on Tuesday. Next Digital’s valuation managed to top the other two with HK $5.2 billion at the peak of the stock rally.
The sudden surge in Next Digital shares arises suspicions from many sides. Innes Tang, chairman of the political organization Politihk Social Strategic, thought the share price of Jimmy Lai’s Next Digital is “abnormal”, as quoted from SCMP. However, data from Bloomberg revealed most of the shares are bought in minimum lots of 10,000 shares. The result easily refutes any suspicion targeted towards Jimmy Lai and Next Digital.
Support doesn’t end with a surge in shares, public commenced to bulk buying Next Digital Ltd’s Apple Daily newspaper
Fellow pro-democracy supporters continued to bulk buy Next Digital’s Apple Daily to back up the company. SCMP reported Apple Daily even printed 550,000 copies due to the rising demand. A notably significant change from its original 70,000 copies print.
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