Mad Paws (ASX:MPA) IPO hooked Qantas and Airtasker

The Mad Paws (ASX:MPA) share price is surging 18% today, delivering pleasing gains to ASX bigwig investors such as Qantas and Airtasker.

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One small cap's initial public offering (IPO) today got the attention of Australia's market bigwigs but managed to slip under most market watchers' radars.

Mad Paws Holdings Limited (ASX: MPA) is enjoying its first day on the ASX today. Particularly, as its pre-IPO investors included ASX heavyweight Qantas Airways (ASX: QAN) as well as Airtasker Ltd (ASX: ART) founder and CEO, Tim Fung.

We don't know much about Mad Paws' ASX listing as yet. Though, we do know it has a market capitalisation of around $45 million. And also that its IPO, which raised $12 million, was more than four times oversubscribed.

The IPO was made up of high quality institutional and sophisticated investors and a number of retail shareholders. Also included in the IPO were more than 400 users of the company's service, who were eager to invest alongside Tim Fung and Qantas.

At the time of writing, the Mad Paws share price is trading 17.5% higher at 23.5 cents, having also fallen by around 17% from its opening price of 28.5 cents. Anyone who managed to invest in the Mad Paws IPO will still be sitting pretty, as they could have snapped up the company's shares for 20 cents apiece.

More about Mad Paws

Mad Paws launched in Australia in 2015, connecting pet owners with pet sitters, walkers and other pet service providers.

Mad Paws is currently purely a proprietary technology platform, but the company plans to expand beyond pet care services. It has recently launched a pet food subscription product, Dinner Bowl. It also plans to introduce a pet insurance product in the first half of 2021.

The company has over 19,000 pet service providers using its marketplace across Australia and over 450,000 user sign ups. More than 180,000 services have been booked through Mad Paws since launch. 

Commentary from management 

Mad Paws chair Jan Pacas said the company has been extremely happy with the ASX's response to its IPO.

…the IPO capital raise [was] 4x oversubscribed, which allowed us to build a strong investor base from both the institutional as well as the retail side. We are particularly excited about the take up from our customer and pet service provider base, with the priority offer being significantly oversubscribed for a total final allocation of $1 million of the $12 million IPO raise.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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