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KARACHI: Zarea Limited, a leading B2B Digital Marketplace for commodities in Pakistan, is set to make history with its Initial Public Offering (IPO), targeting Rs 1.0 billion in fresh capital.

The book-building phase is scheduled for February 10-11, 2025, followed by the retail subscription period on February 17-18, 2025.

With Topline Securities and Growth Securities as Joint Consultant and Book Runner, Zarea will offer 62.5 million shares, representing 23.81 percent of its post-IPO paid-up capital, at a floor price of Rs 16 per share, through a 100 percent book-building mechanism.

Zarea is capitalizing on a globally proven business model that has already demonstrated massive success.

Since its inception in 2020, Zarea has established itself as Pakistan’s leading digital commodities marketplace. The company operates in 30+ cities, has facilitated over 11,000 transactions, and recorded a traded volume exceeding 300,000 metric tons.

Zarea?s financial trajectory is even more compelling with 287 percent CAGR in net profit over the past three years, 235 percent CAGR in revenue, underscoring its ability to scale rapidly and 6MFY25 net profit has already exceeded full-year FY24 profits, highlighting its accelerating momentum.

The IPO proceeds will be strategically deployed to drive Zarea?s continued expansion and operational efficiency. A significant portion of the working capital will be invested in Agri Biomass, a rapidly growing sector as businesses increasingly adopt renewable and sustainable energy solutions. Additionally,

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

Furthermore, 12 percent of the proceeds will be directed toward technology upgrades to ensure scalability and enhance the customer experience. The remaining funds will be allocated to marketing, human resources, and office expansion.

Currently, Zarea focuses on key commodity sectors such as steel, agri biomass, cement, and building materials. The company plans to expand its offerings into seven additional commodity categories, including fertilizers, chemicals, and agri perishables, unlocking new revenue streams and solidifying its industry dominance.

With strong fundamentals and a tech-driven approach, these strategic investments will drive long-term profitability and maximize shareholder value.

Zarea is Shariah-compliant, making it an attractive option for Islamic investors. Additionally, its 10-year tax holiday under the Special Technology Zone Authority (STZA) license provides a major cost advantage, ensuring higher profitability and stronger returns for shareholders.

Copyright Business Recorder, 2025

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