Massive Response for Octopus Digital IPO, 27x oversubscription

September 9, 2021

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Octopus Digital received a massive response in Two Days IPO at Pakistan Stock Exchange. The company is offering 27.3 million shares (which is 20% of the paid-up capital) at a floor price of Rs29 with a cap of Rs40.6. This is the first tech IPO in Pakistan after a gap of 7 years, which was held on 9th and 10th of September-2021.

At the end of Book Building in IPO, Octopus Digital received record bids for 745.6mn shares against 27.35mn shares on offer. The Strike Price reached at its cap, touching Rs. 40.06, marking 11% rise from its floor price.

At the cap price, Company recseived Bids worth Rs. 29.8bn compared to Share worth Rs. 1.095bn on offer, marking 27 times oversubscription.

This is clearly a historic response for any IPO at Pakistan Stock Exchange. Recently held IPOs were oversubscribed in the range of 1.2x – 2x. However, this level of oversubscription hasn’t been witnessed before.

Octopus Digital is a subsidiary of Avanceon Limited, a tech company based in Pakistan and operating throughout Middle East.

The company is holding IPO to raise funds foro development & launch of dashboard platforms and development of independent intellectual properties. The Company plans to offer digital platforms under the brand name of Topware & Omni Connect, as part of its digital strategy to establish itself in the Industrial Internet of Things (IIoT).

Such massive response from the market is due to huge appetite for Tech stocks and lack of IPOs in Tech sector in Pakistan.

The response indicates that High Potential Technology firms can easily raise funding from Pakistan Stock Exchange.

Octopus digital is expected to remain in limelight due to rising demand of real time data analytics through automated dashboards, strong revenue stream from international and local clientele from its After Market Service (AMS), monthly subscription model for customers, (4) upselling from AMS to dashboards and data analytics and partnership with Microsoft Corporation for open source cloud services.