Earlier this week I took a look at three ASX shares which had helped the OC Micro-Cap Fund smash the market. You can read about that here.
Those shares weren't the only ones helping drive OC Micro-Cap Fund's strong performance. The fund manager also took part in a few IPOs during the final quarter of 2020. Here's what it was buying:
Booktopia Group Ltd (ASX: BKG)
The OC Micro-Cap Fund participated in the IPO of this online book retailer. This proved to be a good move, with the Booktopia share price gaining 13% in the final quarter.
Booktopia recently released its half year update and revealed that it had a very strong finish to the year with both a record month in December and a record half. Booktopia shipped a massive 728,000 units during the final month of the half, bringing its total shipments to 4.2 million units for the six months.
This was a 40% increase in shipments on the same period last year and underpinned a 52% increase in unaudited half year revenue to $113 million and a 506% increase in adjusted EBITDA to $8 million.
Doctor Care Anywhere Ltd (ASX: DOC)
The fund manager also took part in the IPO of this telehealth company. It will have been delighted to see the Doctor Care Anywhere share price surge 50% higher during the quarter.
As with Booktopia, Doctor Care Anywhere was on form during the final three months of 2020. It reported a 151% increase in fourth quarter revenue to 3.8 million pounds, bringing its unaudited full year revenue to 11.6 million pounds. This was a 102% year on year increase.
Management advised that this was driven by a 186% increase in the eligible patient metric to 2.2 million and the increasing demand for telehealth services during the pandemic.
OC Micro-Cap Fund commented: "DOC is a UK based tele-health provider with plans to expand its offering into continental Europe and potentially in the Asia-Pacific region. The COVID-19 health crisis has accelerated patients switch to accepting online medical advice (rather than face to face consultations) and DOC is well placed to capitalise on this opportunity to deeply penetrate its potential customer base."
Sovereign Cloud Holdings Ltd (ASX: SOV)
The OC Micro-Cap Fund also participated in this private cloud infrastructure company's IPO. As with the others, this proved to be a success, with the Sovereign Cloud share price gaining 37.3% during the period.
The fund manager believes it has significant potential.
It commented: "SOV, at $100m market capitalisation, is on the smaller side for our Fund to participate in as an IPO but we believe the company has tremendous potential. SOV provides a private cloud infrastructure environment for sensitive information controlled by customers such as the Australian government and the ADF and is levered to increasing value and use of data."
