ZAREA Limited Applies for Listing At PSX

Pakistan Stock Exchange Limited has informed all investors that ZAREA Limited has applied for listing on the Main Board of PSX. The IPO’s entire issue will be offered through the book-building method, allowing bids for the total issue size. Successful bidders will receive a provisional allotment of 75% of the shares (46.875 million), with the remaining 25% (15.625 million) available to retail investors through a general public offering. The funds raised will support Zareaʼs strategic expansion across technology, logistics, infrastructure, and marketing, aiming to broaden its customer base and accelerate growth in the digital commerce sector. The total issue size of the Initial Public Offering comprises 62,500,000 Ordinary Shares having a par value of Rs. 01/- each using the Book Building Method at a Floor Price of Rs. 16/- per share. Topline Securities Limited and Growth Securities Limited are the Joint Lead Managers to the Issue. This represents a substantial discount of approximately 52 percent compared to the technology sector’s industry average P/E of 22.99x on the PSX. This unique opportunity allows investors to enter at a highly attractive valuation, and with the significant potential for growth, oversubscription is anticipated. Pursuant to Circular No. 16 of 2023 dated November 08, 2023, notified by the Securities & Exchange Commission of Pakistan (SECP), the Draft Prospectus of the Company is hereby placed on the PSX Website under the caption of “Public Comments on Draft Prospectus of Zarea Limited”. Details about the Issue can be reviewed through the attached Draft Prospectus of the Company. Through this IPO, Zarea aims to further diversify its product portfolio by expanding its offerings from core commodities like cement, steel, building materials and agri-biomass to further include coal, chemicals, grains, pulses, fertilizers, cotton, yarn, sugar, and agricultural perishables. This growth strategy aligns with the company vision of addressing Pakistanʼs growing demand for efficient, technology-driven trading solutions, thereby presenting investors with a unique opportunity to capitalize on the countryʼs expanding digital economy. All concerned are requested to provide their written comments on the Draft Prospectus, if any, to PSX by emailing at [email protected] by COB Monday, November 04, 2024. Zarea reported a remarkable increase in revenue for the fiscal year ending June 2024, achieving Rs. 281 million compared to Rs. 115 million in FY23. Profit after tax rose to Rs. 292.8 million in FY24, up from Rs. 81.3 million in FY23.