ZAREA Limited has applied for listing on the Main Board of the Pakistan Stock Exchange (PSX), offering an Initial Public Offering (IPO) that promises to be a significant opportunity for investors. The entire issue will be offered through the book-building method, allowing bids for the total issue size.
The IPO comprises 62.5 million ordinary shares with a par value of Rs. 1 each, offered at a floor price of Rs. 16 per share. This represents a substantial discount of approximately 52% compared to the technology sector’s industry average P/E of 22.99x on the PSX, presenting an attractive valuation for investors. Topline Securities Limited and Growth Securities Limited are acting as the Joint Lead Managers for the issue.
Successful bidders will receive a provisional allotment of 75% of the shares, totaling 46.875 million, while the remaining 25% (15.625 million shares) will be available to retail investors through a general public offering. The funds raised from the IPO will support ZAREA’s strategic expansion across technology, logistics, infrastructure, and marketing, aiming to broaden its customer base and accelerate growth in the digital commerce sector.
ZAREA plans to diversify its product portfolio beyond core commodities like cement, steel, building materials, and agri-biomass to include coal, chemicals, grains, pulses, fertilizers, cotton, yarn, sugar, and agricultural perishables. This growth strategy aligns with the company’s vision of addressing Pakistan’s growing demand for efficient, technology-driven trading solutions, offering investors a unique opportunity to capitalize on the country’s expanding digital economy.
The Draft Prospectus of ZAREA Limited has been placed on the PSX website for public comments, as per Circular No. 16 of 2023 issued by the Securities & Exchange Commission of Pakistan (SECP). Stakeholders are invited to submit their written comments by emailing comments.draftprospectus@psx.com.pk by the close of business on 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, underscoring the company’s strong financial performance and growth potential.
