Continuing its momentum of Initial Public Offerings (IPOs), Pakistan is expected to see the listing of Octopus Digital Limited, a wholly-owned subsidiary of Advanceon Limited.
In a notice sent to the Pakistan Stock Exchange (PSX) on Friday, Avanceon said the Pakistan Security and Exchange Commission (SECP) and PSX have approved Octopus Digital Limited’s request to list.
The notice added that the dates of prospectus issuance / book establishment / and IPO of Octopus Digital will be announced at a later date.
Octopus Digital will be the first tech company to IPO in Pakistan for more than seven years, according to the notice. The company intends to offer 27.35 million common shares through the IPO.
âOctopus Digital, a wholly-owned subsidiary of Avanceon Limited, pursuant to subsection (2) of Section 87 read together with subsection (1) of Section 88 of the Securities Act, 2015 has been approved by the SECP and PSX to issue, disseminate and publish the Prospectus for the initial public offering (IPO) of 27.350 million ordinary shares by Octopus Digital Limited (Company / Issuer / Octopus) to institutional investors, high net worth individuals and large public, âAvanceon Limited said in its stock exchange filing.
Panther Tires Successfully Raises Rs 2.632 Billion Through Pound Building
Octopus Digital’s parent company, Avanceon Limited, is an industrial automation and systems integration consultancy. According to financial data from Avanceon Limited, the company, in the first quarter ended March 31, 2021, recorded a consolidated after-tax profit of Rs 244.8 million, compared to Rs 385 million in the same three-month period. of the previous year.
Meanwhile, Octopus Digital specializes in helping businesses digitize their manufacturing, supply chain and financial workflows by leveraging strategic and operational maintenance support services. âThis is a unique venture that will bridge the technological chasm facing the industrial sector in Pakistan today,â Avanceon said in October 2020.
Avanceon has appointed BMA Capital as its sole consultant / financial advisor for the planned IPO.
PABC becomes Pakistan’s eighth IPO in fiscal year, highest since 2009-10
Pakistan has seen an upward trend in PSX listings with 8 IPOs offered in fiscal year 2020-21 alone. This contrasts sharply with the previous year where no IPO was offered. In 2009-10, 8 IPOs were completed before the number rose to 7 in FY 15. However, 7 IPOs were completed in the combined three years, from FY18 to FY18. fiscal year 20, as the Pakistani stock market remained under pressure due to slowing economic growth and political uncertainty.
However, the trend seems to have accelerated.
In June, Pakistan Aluminum Beverage Cans Limited (PABC) raised 4.6 billion rupees, after which Citi Pharma also raised 2.3 billion rupees.
Earlier this year in January, Panther Tires Limited successfully raised Rs 2.632 billion through a two-day pound-building process, which saw wide participation.
The book-building was 4.4 times oversubscribed with a closing price of Rs 65.80 per share; a 40 percent increase in the floor price of Rs 47.0 per share. The total request received was Rs 8.215 billion against a total issue amount of Rs 1.880 billion; oversubscribed by Rs 6.335 million.