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?
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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%.
