Zarea Limited, one of Pakistan’s largest B2B commodities platforms, is set to launch an initial public offering (IPO) at the Pakistan Stock Exchange (PSX) to raise at least Rs1 billion ($3.59 million). The company will offer 62.5 million shares, representing 23.81% of its post-IPO paid-up capital, at a minimum price of Rs16 per share through a 100% book-building process.
In a statement issued on Friday, Zarea said the funds raised from the IPO will support its expansion and operational improvements. A significant portion will be invested in agri biomass, a growing sector as businesses shift toward renewable energy solutions.Â
Additionally, 24% of the proceeds will be used to develop an in-house logistics system, reducing reliance on third-party providers.
The company also plans to allocate 12% of the funds toward technology upgrades to improve scalability and customer experience. The remaining capital will be directed toward marketing, human resources, and office expansion.Â
Zarea aims to expand its offerings into seven more commodity categories, including fertilizers, chemicals, and agri perishables.
The book-building phase is scheduled for February 10-11, 2025, followed by the retail subscription period on February 17-18, 2025. Topline Securities and Growth Securities have been appointed as joint consultants and book runners for the offering.
Pakistan’s IPO market saw a revival in 2024, with seven IPOs, including two on the GEM Board, compared to just one in 2023. The total capital raised from these offerings stood at Rs8.4 billion, the highest level since 2021.
