Mobile value added service provider Allterco raises BGN 2.2m in a successful IPO in Sofia, the company and its broker announced on 20th October.
Demand for the company’s stock surpassed supply by.166x. All submitted 240 orders were for 2.5 million shares when the company offered 1.5 million new shares in total with a minimum success threshold of 750 000 subscribed shares.
Allterco IPO price set in the middle
The IPO price was set at 1.45 per share from the initial price range of BGN 1.1-2.2 per share or 30% above the lower price range. Retail investors as well as local mutual funds and investment
intermediaries are to subscribe the IPO.
IPO to fund Internet of Things line
Allterco will use the proceeds to fund its new business line in the Internet of Things. The Company already sells a kids smart watch MyKi and plans to start marketing a home automation system – She.
Allterco’s IPO is the second in Sofia for the last 12 months and the first to be fully subscribed. In October 2015, Sirma Group Holding raised BGN 11.5m placing 60% of the offering at the lower price range. Currently, the stock trades 17% below its IPO price.