Octopus IPO makes historical past


Octopus Digital has acquired historic responses from buyers throughout its two-day e book constructing course of (public sale) to promote 20% shareholding to boost financing for enlargement of its enterprise and make its shares out there for commerce on the Pakistan Inventory Change (PSX).

“The tech firm has damaged all of the earlier data throughout e book constructing course of at PSX, as its shares had been oversubscribed by a document 27-time and it acquired bids value document Rs30 billion,” Lead Supervisor and Guide Runner BMA Capital Government Director Saad Hashmey advised The Categorical Tribune.

Institutional and wealthy particular person buyers positioned bids for 745.61 million shares in opposition to a mere 27.35 million (20%) shares placed on the sale – displaying that shares had been oversubscribed by over 27-times, he stated.

“The bids for oversubscribed shares amounted to document excessive at Rs30 billion. No different firm to date raised such a excessive quantity throughout IPO (preliminary public providing, which is a approach of changing into a public firm by way of promoting shares to common public) all through the historical past at PSX,” he stated.

The corporate, nonetheless, offered 27.35 million shares at Rs40.6 per share. Accordingly, it raised a complete of Rs1.11 billion in precise in the course of the two-day e book constructing course of (public sale) on Thursday and Friday.

The IPO is geared toward international enlargement of the corporate, enterprise scale and sustainable development.  The corporate would utilise the IPO proceeds for improvement of mental properties (IPs), replicating AMS to Asia, Center East and Africa.

“The corporate requires funding…to develop and launch varied digital dashboard platforms. The plan is to construct twenty 9 (29) unbiased mental properties (IPs). The precise dashboards…can be ready for industrial and manufacturing sectors, which can present at-a-glance view of key efficiency indicators related to a specific goal or enterprise course of,” the corporate stated in its prospectus for the IPO.

Octopus Digital makes use of huge information, synthetic intelligence (AI) and machine studying to supply options designed for collaborative real-time evaluation to enhance course of efficiencies and assist its prospects transition into the trade 4.0 period (the subsequent stage of tech effectivity).

The corporate opened bidding on the minimal share value of Rs29 every and achieved last bid value of Rs40.6 per share, which was the utmost allowed value for the IPO. “Per legal guidelines in place the share value might go as excessive as by 40% to Rs40.6 per share from bid opening value of Rs29,” Hashmey stated.

The corporate offered 20.51 million shares (75% of the whole 27.35 million shares) to institutional and excessive web value particular person buyers. It’s scheduled to supply remainder of the 25% (or 6.84 million shares) to retail buyers on September 16-17.

“The oversubscription suggests there may be sturdy urge for food…and large liquidity out there for funding in tech companies on the nationwide bourse,” the BMA official stated.

“That is the primary preliminary public providing (IPO) by a tech firm (Octopus) after a spot of seven years at PSX,” Lead Supervisor and Guide Runner BMA Capital advised.

Methods Restricted was the final tech agency listed on the Pakistan bourse. Octopus Digital is a subsidiary of Avanceon Restricted which was listed on the PSX (previously Karachi Inventory Change) in late 2013.

Revealed in The Categorical Tribune, September 11th, 2021.

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