Octopus Digital has received huge interest from investors, as it got record eight-time high bids for its 27.35 million shares on sale on the first of the two-day book-building process at the Pakistan Stock Exchange (PSX) on Thursday.

The tech company received bids for 212.12 million shares from investors against its offer for sale of 27.35 million shares only, receiving overwhelming response of 7.75-multiples from institutional and high net worth individual investors.

Besides, the tech firm hit upper limit of Rs40.6 per share on first day of the auction (book building).

The company opened bidding at minimum price of Rs29 per share, which was allowed to go as high as 40% to Rs40.6 per share as per prevailing rules.

“This is the first initial public offering (IPO) by a tech company after a gap of seven years at PSX,” Lead Manager and Book Runner BMA Capital told.

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Octopus Digital is a subsidiary of another tech firm Avanceon Limited listed at PSX.

“Our solutions using big data, artificial intelligence (AI) and machine learning are designed for collaborative real-time analysis to improve process efficiencies and help our customers transition into the Industry 4.0 era,” Octopus Digital Chairman and Avanceon Limited Fonder & CEO Bakhtiar H Wain was quoted by BMA Capital.

The IPO is aimed at raising investment in range of Rs793.5 million to Rs1.11 billion through sale of 27.35 million shares. The size of the investment depends on find of strike share price during the two-day book building.

The IPO is aimed at “global expansion, business scale and sustainable growth,” it was learnt.

The company would utilise the IPO proceeds for “intellectual properties development, replicating AMS to Asia, Middle East and Africa.”

Published in The Express Tribune, September 10th, 2021.

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