Zarea Limited IPO Oversubscribed, Shares Offered at Rs16
The IPO's oversubscription by 1.9 times reflects the market's confidence in Zarea Limited's growth potential, as the company moves forward with its plans to expand and diversify its operations, aiming to become a leading player in the Pakistani commodities market.
Zarea Limited, a leading B2B commodities platform in Pakistan, has raised Rs1.03 billion through its initial public offering at the Pakistan Stock Exchange, exceeding the targeted Rs1 billion with an oversubscription of 1.9 times.
The company sold 62.5 million shares at a strike price of Rs16.5 per share and will now offer 16.3 million shares to retail investors at the same price. However, for public subscription, shares are being offered at Rs16, a 3.03% discount to the strike price, in lots of 500, 1,000, 1,500, and 2,000 shares. Subscriptions exceeding 2,000 shares will be issued at the strike price of Rs16.5.
The funds raised through the IPO will be utilized to expand operations in the agri-biomass sector, develop the logistics network, and invest in technological upgrades. A significant portion will also be allocated to marketing, human resources, and office expansion. Zarea aims to diversify into seven more commodity sectors, including fertilisers, chemicals, and agricultural perishables, and reduce its reliance on third-party service providers.
The successful IPO of Zarea Limited, the first of 2025, demonstrates strong market confidence and ample liquidity for IPOs, setting a positive tone for the year. With its plans for expansion and diversification, Zarea Limited is poised to make a significant impact in the commodities sector in Pakistan.
