Zarea Limited to Go Public with Rs1 Billion IPO

Zarea, one of Pakistan’s largest B2B #commodities platforms, plans to raise Rs1 billion ($3.59 million) through an IPO at the Pakistan Stock Exchange – PSX. The company will offer 62.5 million shares, representing 23.81% of its post-IPO paid-up #capital, at a floor price of Rs16 per share. The book-building phase is scheduled for February 10-11, 2025, followed by retail subscription on February 17-18, 2025.

Zarea Limited aims to use the IPO proceeds to expand operations and improve efficiency. A large portion will be invested in #agri #biomass, supporting renewable energy initiatives. The company will also allocate 24% of the funds to build an in-house logistics model, reducing #reliance on third-party providers. Another 12% will go toward technology upgrades, ensuring scalability and a better #customer experience. The remaining funds will support #marketing, human #resources, and office #expansion.

Pakistan’s IPO market saw strong growth in 2024, raising Rs8.4 billion across seven offerings. Analysts at Topline Securities Ltd attribute this to #macroeconomic stability, high #liquidity, and falling #interest rates. Zarea Limited’s IPO is expected to contribute to this momentum, giving investors an opportunity to participate in the company’s #expansion within the commodities sector.