Zarea Limited, one of Pakistan’s largest commodities B2B platforms, raised Rs1.03 billion by selling 62.5 million shares in the 2025’s first initial public offering (IPO) at the Pakistan Stock Exchange (PSX).
Zarea determined a strike price of Rs16.5 per share at the two-day (Feb 10-11) Dutch auction.
According to the PSX bidding screen, the B2B platform raised Rs31.25 million equity in addition to its set target of Rs1 billion, as the share price ascended to Rs16.50 during the two-day book-building process from the floor (minimum) price set at Rs16 per share.
Topline Securities, one of the two book runners, reported the IPO got oversubscribed by 1.9-time, as the company received total demand for shares at Rs2 billion against the raised equity at Rs1.03 billion.
A share price could rise by a maximum 40% during an IPO from the floor price, according to the rules in place.
Out of the total selling lot of 65.2 million shares, the company would offer 25% to retail investors on February 17-18, 2025 at the strike price of Rs16.5 per share.
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According to a recent press statement, 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% of the proceeds will be utilised 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,” the statement read.
Furthermore, 12% 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, it added.
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 fertilisers, chemicals, and agri perishables, unlocking new revenue streams and further diversifying its portfolio.
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