This is the latest news about Zarea Limited IPO. Investors looking for high-growth potential in the technology and e-commerce sector will find Zarea Limited, Pakistan’s top B2B digital commodity trading platform, to be an appealing option when it goes public through an Initial Public Offering (IPO).
Zarea’s listing on the Pakistan Stock Exchange (PSX) marks a significant milestone in the nation’s evolving digital commerce landscape, given its proven track record of rapid expansion, robust financial performance, and a strategic vision to disrupt Pakistan’s commodity supply chain.
Zarea Limited’s initial public offering (IPO) is expected to raise Rs1 billion. The retail subscription section will be open from February 17 to 18, 2025, while the book-building process is planned for February 10 to 11. Through a 100 per cent book-building mechanism, the IPO, which is jointly led by Topline Securities and Growth Securities, will offer 62.5 million shares, or 23.81 per cent of its post-IPO paid-up capital, at a floor price of Rs16 per share.
Zarea uses a business strategy that has already shown promise abroad. One company with a similar model, OFBusiness in India, is valued at over USD 5 billion and is getting ready for its own initial public offering (IPO).
By using its cutting-edge B2B e-commerce platform, Zarea.pk, to transform the commodity trading market, Zarea hopes to duplicate this success in Pakistan. The platform offers transparency, efficiency, and scalability while facilitating smooth transactions between buyers and sellers. With operations in more than 30 cities, more than 11,000 transactions, and more than 325,000 metric tonnes of orders delivered since its founding, Zarea has become a dominant force in Pakistan’s digital marketplace.
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A highly qualified and varied board of directors supports Zarea Limited, guaranteeing sound corporate governance and strategic direction. With vast backgrounds in corporate leadership, procurement, taxation, banking, and digital transformation, the board is made up of financial specialists, technology leaders, and veterans of the industry.
The CEO, Ali Alam Qamar, has been instrumental in propelling Zarea’s expansion and dominance of the market. Known for his proficiency in corporate governance and energy sector reforms, Sohail Wajahat Siddiqui (Sitara-i-Imtiaz), a former federal minister and former managing director of Siemens Pakistan, is a member of the board.
Furthermore, the company’s financial oversight is strengthened by Muhammad Afzal Chaudhry, a seasoned banker with more than 40 years of experience in credit and risk management. Juneid Akram, a former senior official of Pakistan’s Federal Board of Revenue (FBR) with extensive expertise in risk management, tax policy, and regulatory compliance, is also on the board.
Zarea’s governance structure guarantees sustainable long-term growth with a dedication to openness, legal compliance, and stakeholder value—giving investors faith in the company’s operational integrity and leadership.
With a 287 per cent compound annual growth rate (CAGR) in net profit and a 235 per cent CAGR in revenue over the last three years, Zarea has shown remarkable growth metrics, demonstrating the company’s capacity for quick expansion. The company’s 6MFY25 net profit has already surpassed its full-year FY24 profits, demonstrating its excellent operational performance.
Zarea is reasonably priced with a trailing P/E multiple of 6.64x, which is 73.7pc lower than the technology sector average of 25.24x, despite these remarkable growth numbers. Additionally, the market has increased by 50% since the PKR 16 floor price was established, which strengthens the offering’s value proposition even more.
The proceeds from the IPO will be used wisely to support Zarea’s ongoing growth and operational effectiveness. A sizable amount of the working capital will go towards Agri Biomass, a rapidly expanding industry as more companies turn to sustainable and renewable energy sources. Additionally, Zarea will be able to move away from third-party logistics providers by using 24 percent of the proceeds to create an internal logistics model.
It is anticipated that this action will increase profit margins and give the business more control over delivery schedules. Additionally, in order to guarantee scalability and improve the customer experience, 12 per cent of the proceeds will go towards technological upgrades. The remaining funds will be used for office expansion, marketing, and human resources.
At the moment, Zarea concentrates on important commodity sectors like building materials, cement, steel, and agri-biomass. The company intends to diversify its portfolio and open up new revenue streams by expanding into seven more commodity categories, such as chemicals, fertilisers, and agri-perishables.
Zarea’s 10-year tax holiday, which is granted under the Special Technology Zone Authority licence, gives it a significant competitive edge and makes it an appealing option for Islamic investors due to its Shariah-compliant status.
Zarea, which was founded in 2020, uses state-of-the-art technology to expedite business-to-business procurement procedures in Pakistan, guaranteeing effectiveness and openness in the commodity trading industry. Motivated by OFBusiness’s triumph in India, Zarea’s inventive business strategy places it at the forefront of Pakistan’s digital transformation process.
For investors wishing to learn more about Pakistan’s rapidly expanding tech and e-commerce industry, Zarea’s initial public offering (IPO) presents an excellent opportunity due to its attractive valuation, solid financial history, and clear growth strategy.
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