Why the Dubber Corp (ASX:DUB) share price is surging today

The Dubber Corp Ltd (ASX: DUB) is up almost 3% and at a new all-time high. Here's why this ASX tech share is soaring today.

child in superman outfit pointing skyward, indicating a rising share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Dubber Corp Ltd (ASX: DUB) share price is surging today. Dubber shares are up 2.93% at the time of writing to $1.58, after closing at $1.51 yesterday and opening at $1.55 this morning.

Even though 2.93% is a hefty one-day gain by any means, Dubber shares were actually doing much better earlier in the day. The Dubber share price climbed as high as $1.64 soon after market open (a rise of nearly 6% and a new 52-week high) before settling at the current share price soon after. For comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.25% at the time of writing.

So why is this ASX tech share defying the broader market today and climbing high?

Share purchase plan swamped

Today, we got news from Dubber that its share purchase plan (SPP) has been successful – extremely successful, it seems.

In an ASX release to the market this morning, Dubber told investors that it has received over $33 million in applications for the SPP, well over the targeted $6 million initially flagged.

As a result, the company will reportedly endeavour to accept $10 million in applications by scaling back its acceptance of SPP offers. This will result in the issuance of just over 9 million shares.

The initial Dubber retail SPP closed on Friday 6 November and involved the opportunity for 'eligible shareholders' in Australia and New Zealand to apply for up to $30,000 worth of new shares each at the price of $1.10 a share.

A preceding SPP for institutional investors also took place last month, which raised another $35 million.

What else has been moving the Dubber share price?

It's also worth noting that this cloud data company has had a very busy week, and indeed month – in fact, the Dubber share price is up almost 45% over the past month alone.

Last week, Dubber announced that the company had been selected as the recording and data capture platform for big blue itself, IBM (NYSE: IBM). IBM has launched a new service, the IBM Cloud for Telecommunication Services platform, and Dubber is playing a central role.

IBM is a behemoth company with a market capitalisation of ~US$104 billion, so this is obviously big news for the $378 million-sized Dubber. The Dubber share price shot up 8% on the news.

That was on top of the announcement last month that Dubber has launched an artificial intelligence solution for Microsoft Teams, owned by Microsoft Corporation (NASDAQ: MSFT), which sent Dubber shares up 16%.

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of IBM. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Microsoft and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Adore Beauty, Domino's, DroneShield, and Universal Store shares are rising today

Not all shares are falling today. Why are these rising?

Read more »

Lion roaring in the wild, symbolising a rising Liontown share price.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors once again pulled back from record highs today.

Read more »

Cheerful boyfriend showing mobile phone to girlfriend in dining room. They are spending leisure time together at home and planning their financial future.
Share Gainers

Why Accent, Dusk, Evolution Mining, and Zip shares are pushing higher today

These shares are having a great session. But why?

Read more »

Hands reaching high for a trophy with a sunset in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another day and another record high for ASX shares this Wednesday.

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Gold

Have you heard of this ASX gold stock? It's up 114% in 8 days!

Investors have sent the ASX gold stock flying higher in July. But why?

Read more »

A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.
Share Gainers

Why Cettire, Core Lithium, Northern Star, and Step One shares are charging higher

These shares are having a good time on hump day. But why?

Read more »

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

It was back to earth for ASX investors this Tuesday.

Read more »

A man sees some good news on his phone and gives a little cheer.
Share Gainers

Why EOS, Hub24, Integrated Research, and Kingsgate shares are pushing higher

These shares are having a strong session. But why?

Read more »