· COEUS Pakistan’s book building is expected to take place from 9th May’22 to 11th May’22 where the company is offering 5mn shares at a floor price of PkR210/sh. The main purpose of the issue is to grow its existing products while also carrying out M&A activities to consolidate its position.

· COEUS is a technology company which offers its services in Germany mainly with the help of its distributor, COEUS GmbH. COEUS GmbH will transfer revenue to COEUS Pakistan after charging a cost+8% margin on the services being offered.

· COEUS Pakistan has recently launched its own products (Vidmonials and Workhub) which have witnessed significant success recently with the ARR already standing at USD245k as of Mar’22. Apart from these products already being the mainstay for 166% revenue CAGR for FY22-25, venture capital is expected to be raised in near future for both the products which can provide further uplift to the company’s valuation.

· With 3yr PEG standing at ~0.1x against 0.6-0.8x being offered by other high growth technology companies currently listed at the bourse, we adopt a Subscribe stance for the stock where continued growth in products will drive the revenue growth forward while M&A growth will aid in improving human resource capacity.

Courtesy- AKD Research