Zarea Limited, a leading B2B commodities platform in Pakistan, has successfully raised Rs1.03 billion through its initial public offering (IPO) at the Pakistan Stock Exchange (PSX), marking the first IPO of 2025. 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.
The book-building process, which began with a floor price of Rs16 per share, saw an oversubscription of 1.9 times, with total demand reaching Rs2 billion.
According to a brokerage house, one of the book runners, the strong investor interest resulted in an additional Rs31.25 million equity beyond the targeted Rs1 billion.
The next phase of the IPO will take place on February 17-18, when 25% of the total offering—16.3 million shares—will be made available to retail investors at Rs16.5 per share.
Zarea Limited announced on Wednesday that it will offer shares to the general public at a discounted rate of PKR 16 per share, representing a 3.03% reduction from the strike price of PKR 16.50. This offer applies to subscriptions of 500, 1,000, 1,500, and 2,000 shares, while purchases exceeding 2,000 shares will be issued at the strike price.
In a statement, Zarea Limited outlined its plans for utilizing the IPO proceeds, with a significant portion allocated to expanding its operations in the agri-biomass sector, which is gaining traction as businesses seek renewable energy alternatives.
The company also aims to develop its in-house logistics network by dedicating 24% of the raised funds to reducing reliance on third-party service providers, improving delivery timelines, and enhancing profit margins.
Additionally, 12% of the proceeds will be used for technological upgrades to improve scalability and customer experience, while the remaining funds will go towards marketing, human resources, and office expansion.
Zarea currently operates in key commodity sectors such as steel, agri biomass, cement, and building materials, and plans to diversify into seven more categories, including fertilisers, chemicals, and agricultural perishables.
