Islamabad, Oct 28: ZAREA Limited Applies for Listing at PSX
All investors have been notified by Pakistan Stock Exchange Limited that ZAREA Limited has submitted an application to be listed on the PSX Main Board.
The book-building mechanism will be used to offer the whole issue of the IPO, allowing bids for the entire issue size. 75% of the shares (46.875 million) will be provisionally allocated to successful bidders, while the remaining 25% (15.625 million) will be made available to ordinary investors through a general public offering.
The money raised will help Zarea expand strategically in the areas of technology, logistics, infrastructure, and marketing in order to increase its clientele and boost growth in the digital commerce industry.
62,500,000 Ordinary Shares with a par value of Rs. 01 each, issued under the Book Building Method, with a floor price of Rs. 16 per share, make up the whole issue size of the IPO. The issue is jointly managed by Topline Securities Limited and Growth Securities Limited.
Compared to the industry average P/E of 22.99x on the PSX for the technology sector, this indicates a significant discount of almost 52%. Investors can enter at a very competitive value thanks to this exceptional opportunity, and oversubscription is expected given the substantial growth potential.
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.
With its initial public offering (IPO), Zarea hopes to increase the variety of products it offers by adding coal, chemicals, cereals, pulses, fertilizers, cotton, yarn, sugar, and agricultural perishables to its core commodities of cement, steel, building materials, and agri-biomass. This expansion plan is in line with the company’s goal of meeting Pakistan’s increasing need for effective, technologically advanced trading solutions, giving investors a special chance to profit from the nation’s developing digital economy.
All interested parties are asked to send PSX any written feedback they may have on the Draft Prospectus by email at comments.draftprospectus@psx.com.pk by COB on Monday, November 04, 2024.
With revenue of Rs. 281 million for the fiscal year that ended in June 2024, Zarea recorded a notable rise over FY23’s revenue of Rs. 115 million. In FY24, profit after tax increased from Rs. 81.3 million in FY23 to Rs. 292.8 million.
