Zarea Limited Secures Rs1.03 Billion in Pakistan’s First IPO of 2025

Zarea Limited, one of Pakistan’s largest B2B commodities platforms, has successfully raised Rs1.03 billion in the first initial public offering (IPO) of 2025 at the Pakistan Stock Exchange (PSX). The company sold 62.5 million shares at a strike price of Rs16.5 per share during a two-day Dutch auction held on February 10-11, 2025.

The initial public offering started at a price of Rs16 per share; however, it garnered subscriptions that were 1.9 times greater than anticipated, resulting in a total demand of Rs2 billion. The majority of investors surpassed the company’s initial funding objective of Rs1 billion through the book-building process, successfully raising Rs31.25 million. Topline Securities, serving as the book-running firm, reported that the initial public offering (IPO) garnered interest from investors that exceeded expectations.

The upcoming stage of the Initial Public Offering will allocate 16.3 million shares, valued at Rs261 million, to retail investors over a two-day interval from February 17 to February 18, 2025.

The initial public offering (IPO) funds at Zarea Limited have recently triggered the implementation of their planned financial resource distribution strategy. The company will redirect substantial IPO funds toward strengthening its agri-biomass operations because renewable energy solutions experience rising marketplace demand.

 “24% of the proceeds will be utilised to establish an in-house logistics model, allowing Zarea to transition away from third-party logistics providers,” the company said. “This move is expected to provide the company with better control over delivery timelines while improving profit margins.”

Furthermore, the company allocates 12% of funding to technological upgrades which aims to enhance scalability while improving customer experience. Marketing receives 26% of these funds and the company dedicates 35% to hiring personnel and 39% to expanding its offices.

Currently, Zarea Limited maintains its operations across four primary commodity sectors including steel together with agri-biomass and cement and building materials at present. The company aims to expand its marketplace beyond its current three sectors by introducing business operations in seven new commodity categories including fertilizers along with chemicals and agricultural perishables.