WEBDESK (Azaad English): Zarea Limited, a leading B2B commodities platform in Pakistan, managed to raise over Rs1 billion through its initial public offering (IPO) at the Pakistan Stock Exchange (PSX) during a Dutch auction held on 10–11 February.
The company sold 62.5 million shares at a stake price of Rs16.5 per share during the two-day event. According to Topline Securities, one of the bookrunners, the B2B platform raised Rs31.25 million in equity. Investors oversubscribed the IPO by 1.9 times, further strengthening their bid to raise share prices by 40 per cent.
Zarea Limited’s business model is the main reason behind their success. India’s business, which follows the same business model as Zarea Limited, is valued at over USD5 billion. Zarea aims to recreate this success through their innovative B2B e-commerce platform, Zarea.pk.
Zarea Limited announced on Wednesday that it will offer shares to the general public at a discounted rate of Rs16 per share. This offer applies to subscriptions of 500, 1000, 1500, and 2000 shares.
According to a recent press statement, Zarea Limited announced its plan to use the IPO proceeds, using a significant portion to expand operations in the agri-biomass sector.
The company also aims to use 24 per centof the proceeds to establish an in-house logistics model to help reduce reliance on third-party vendors and service providers.
