Octopus Digital Pvt Limited, a 100 percent wholly-owned Subsidiary of Avanceon Limited, has applied for its listing at Pakistan Stock Exchange to raise funds of Rs. 793 million. This is the first technology company that is going public after more than five years on the stock exchange.
According to the draft prospectus, the issue comprises 27,350,000 Ordinary Shares of the face value of Rs. 10/- each, which constitutes 20 percent of the total post-IPO paid-up capital of the company. The entire issue will be offered through the 100 percent book building method at a Floor Price of Rs. 29/- per share (including a premium of Rs. 19/- per share) with a maximum price band of up to 40 percent above the Floor Price. An individual could invest with a minimum share volume of 1 million through a book-building process.
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Octopus Digital Sets To Expand Its Business
Octopus Digital Pvt Ltd is a service-oriented company, and currently providing AMS services to a wide range of clients, both internationally and locally. The company has evolved from within Avanceon (it is a wholly-owned subsidiary of Avanceon) and aims to provide digital services to help transform the industry through modern-day technology, including cloud services, data analysis, advanced and predictive analytics, predictive maintenance, and risk management.
Its primary focus is to contextualize the data, which is buried in Enterprise Resource Planning (ERP) systems, cleaning it in AI-centric ways by storing and computing on cloud and then extracting meaningful insights that could improve operations efficiencies and reduce risks for its customers.
The company delivers various solutions targeting user interaction and machine behavior, ranging from plant data analysis to overall performance analysis of the plant.
Octopus’s business model is based on recurring earnings, based on perpetual or term-based multi-year monthly subscription service instead of fixed cost or time and material-based projects, thereby reducing the risk of volatile earnings as this is prevalent in other conventional businesses in Pakistan.
The company helps businesses digitalize their manufacturing, supply chain, and financial workflows by strategic and operational maintenance support services. That makes decision support, actionable insights, and business intelligence available at any time, all year round, both as managed and unmanaged service.
The company partnered with Microsoft in March 2019 for three years to create a collaborative and co-development business model to cater to the industrial sector. The company overall assets’ value stood at Rs. 1.35 billion by the end of 2020. The company made a windfall profit of Rs. 208 million in 2020, as against a profit of Rs. 2.44 million were reported in 2019.
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Future Outlook
The company requires the funding of Rs. 793.15 million to develop various Digital Dashboard platforms to expand its services suite to industry, which is an industrial revolution that includes automation of traditional manufacturing and industrial practices. The target markets for these services will be Pakistan, the Middle East, and the United States.
Besides, the funds will be used for the creation of intellectual properties, and its marketing and sales expenditures shall be utilized within Pakistan. The company will hire human resources such as software engineers, technical experts, etc., at market price.
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