KARACHI: A gong ceremony was held at Pakistan Stock Exchange (PSX) to announce listing of Octopus Digital Limited which had successfully carried out its Initial Public Offering recently. BMA Capital Management was the Lead Manager and the Book Runner to the Issue. The company was listed on Pakistan Stock Exchange (PSX) with effect from October 05, 2021.
The Issue consisted of 27,350,000 ordinary shares which were offered 100 percent through book building method at a Floor Price of Rs 29 per share. The bidders were allowed to place bids for 100 percent of the Issue size. However, the successful bidders were allotted only 75 percent of the issue size, ie, 20,512,500 shares and the remaining 25 percent i.e. 6,837,500 shares were offered to retail investors.
The company received total participation of Rs 30.249 billion against the Issue of Rs 1.110 billion at strike price which was determined at Rs 40.60 per share, thereby being oversubscribed by an overwhelming 27.24x. A large number of investors participated in the book building process and out of 1,821 bidders, 1,757 investors were declared successful.
The retail portion of the IPO also attracted tremendous response. Applications for 30,032,500 million shares were received against the Issue size of 6,837,500 million shares. The retail portion of the Issue was thus oversubscribed by 4.39 times. Octopus Digital Limited raised these funds to develop and launch various independent intellectual properties which are, specifically, digital dashboard platforms for industrial and manufacturing industries. The funds were also raised to meet the Company's HR cost of Marketing and Sales teams.
Speaking about the successful IPO and listing of Octopus Digital Limited, the MD PSX, Farrukh H Khan said it is an exciting development to welcome Octopus Digital to PSX. It is a welcome development that the IT sector is growing in Pakistan. "We hope that the success of this IPO will also encourage other IT companies to come forth and raise growth capital from PSX," he said.
He said as a listed company, Octopus Digital Limited will benefit from raising capital and having a diversified domestic and foreign shareholder base who are keen to invest in the IT and digital sector of Pakistan. Octopus Digital's is the 4th listing on the Exchange for the fiscal year 2021-22, he said. "We are very happy at the accelerating pace of IPOs at PSX and have a full pipeline for the rest of the year", he said. "We are particularly happy that Octopus Digital will add to the number of tech companies on PSX."
Speaking about the IPO and Listing of Octopus Digital Limited, the Chairman of the Company, Bakhtiar H Wain, said, "I am truly overwhelmed at the response we've received. It certainly is an achievement, thanks to the efforts of BMA Capital, our Financial Advisor and the Octopus Digital Team. In addition, I would like to sincerely thank our customers and shareholders. It's a brilliant start, and we will continue to set records and make history with our business results."
Copyright Business Recorder, 2021