Commodities Marketplace Zarea to Raise Rs. 1 Billion Through IPO At PSX

Zarea Limited is set to raise Rs. 1 billion through its Initial Public Offering (IPO) at the main bourse. The book-building phase will be held on February 10-11, 2025, followed by the retail subscription period on February 17-18, 2025. Topline Securities and Growth Securities are acting as joint consultants and book runners. The company 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 follows a globally successful business model, similar to India’s OFBusiness and Infra. Market, which has achieved multi-billion-dollar valuations. The company has rapidly expanded since its inception in 2020, operating in over 30 cities, facilitating more than 11,000 transactions, and recording a traded volume exceeding 300,000 metric tons. Financially, Zarea has demonstrated encouraging growth, with a 287 percent compound annual growth rate (CAGR) in net profit over the past three years and a 235 percent CAGR in revenue. Its net profit for the first half of FY25 has surpassed its full-year FY24 earnings. Proceeds from the IPO will be used to expand operations, including investment in Agri Biomass, in-house logistics, and technology upgrades. Zarea plans to diversify into new commodity categories such as fertilizers, chemicals, and agri perishables. It also benefits from a 10-year tax holiday under the Special Technology Zone Authority (STZA) license.