Zarea Limited plans IPO in Feb to raise Rs1bn

KARACHI: Zarea Limited, one of Pakistan’s largest B2B commodities platforms, is gearing up for an initial public offering (IPO) on the Pakistan Stock Exchange (PSX) in a bid to raise at least Rs1 billion.

The company plans to offer 62.5 million shares, accounting for 23.81 per cent of its post-IPO paid-up capital, at a floor price of Rs16 per share. The IPO will be executed through a 100 per cent book-building mechanism, with the book-building phase set for February 10-11, 2025, followed by the retail subscription period on February 17-18, 2025.

Proceeds from the offering will be strategically allocated to Zarea’s expansion initiatives, including a significant investment in the rapidly growing agri biomass sector. The company aims to capitalise on the rising trend of renewable and sustainable energy adoption by businesses.

Twenty-four per cent of the funds will be allocated to building an in-house logistics model, replacing third-party providers, while 12 per cent will go towards upgrading technology for scalability and customer experience improvements. The remaining funds will be directed towards marketing, human resources and office expansion.

The company also plans to diversify its portfolio by expanding into seven new commodity categories, including fertilisers, chemicals and agri perishables. Topline Securities and Growth Securities have been appointed as joint consultants and book runners for the IPO.