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Zarea Limited, a leading commodities B2B platform in Pakistan, is aiming to raise a minimum of Rs1 billion ($3.59 million) through an initial public offering (IPO) on the Pakistan Stock Exchange (PSX).
Through a 100% book-building method, Zarea will sell 62.5 million shares at a floor price of Rs16 per share. This represents 23.81% of its post-IPO paid-up capital.
The company announced in a press statement that “the IPO proceeds will be strategically deployed to drive Zareaʼs continued expansion and operational efficiency” earlier this week.
“A significant portion of the working capital will be invested in agri biomass, a rapidly growing sector as businesses increasingly adopt renewable and sustainable energy solutions.
“Additionally, 24% of the proceeds will be utilized to establish an in-house logistics model, allowing Zarea to transition away from third-party logistics providers.
“Furthermore, 12% of the proceeds will be directed toward technology upgrades to ensure scalability and enhance the customer experience. The remaining funds will be allocated to marketing, human resources, and office expansion,” it added.
In addition to fertilizers, chemicals, and agro perishables, the business intends to broaden its product offerings into seven other commodity areas.
In 2025, February 10–11 will be the book-building phase, and then February 17–18 will be the retail subscription time. The firm has hired Growth Securities and Topline Securities to work together as consultants and book runners.
Pakistan’s IPO Market Sees a Strong Comeback
After seeing just one initial public offering (IPO) in 2023, the stock market in Pakistan had seven IPOs in 2024, including two GEM Board offers, marking a significant recovery for the country’s IPO sector.
With seven separate offers in 2024, the total amount raised from investors reached Rs8.4 billion, the highest level since 2021.
