Octopus Digital wins Rs100 million contract from country’s largest tea manufacturer

Web DeskWeb Editor

28th Jun, 2021. 04:55 pm
Contract Law

KARACHI: Octopus Digital Limited, a wholly-owned subsidiary of Avanceon Limited, has won a Rs100 million contract from one of the largest tea manufacturers to ensure overall equipment efficiency (OEE) on two of its plants, a statement said on Monday.

“Octopus Digital’s Infrastructure as a Service (IaaS) proposal is based on its BTMI value proposition, which constitutes conceive, design, implement, maintain, and improve methodology,” it added.

To recall, Octopus Digital Limited has announced to sell its 20 per cent shares at a floor price of Rs29/share, translating into Rs793.15 million. Octopus Digital, a software development and IT solutions subsidiary of Avanceon Limited, plans to sell 27.35 million shares through [the] initial public offering (IPO) at the Pakistan Stock Exchange.

Octopus is a technology service-oriented company that provides After-Market Services (AMS) to a wide range of clients, both locally and internationally. Other IT sector listed companies, including Systems Limited (SYS), Netsol Technologies Limited (Netsol), TRG Pakistan Limited (TRG) and Avanceon Limited (parent company of Octopus) are not direct competitors of Octopus, it said.

Services and technology sectors require constant automation and upgradation, and the company and its sponsor are a longstanding automation provider for the manufacturing industries.

Octopus is expecting a robust demand from various manufacturing and industrial sectors across the country, the Middle East and the US.

The issue comprises 27.35 million ordinary shares, which constitutes 20 per cent of the total post-IPO paid-up capital of Octopus Digital. The strike price will be the price at which 100 per cent of the issue is subscribed. However, the successful bidders will be provisionally allotted 75 per cent of the issue size, comprising 20.512 million shares and the remaining 6.837 million shares will be offered to retail investors.

Octopus requires funding of Rs793.15 million to develop various digital dashboard platforms to expand its services suite to industry 4.0, 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.

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