KARACHI: Zarea Limited, Pakistan’s leading e-commerce marketplace for commodities, has filed for listing on the Pakistan Stock Exchange (PSX) main board, aiming to raise a minimum of Rs 1 billion. The company will offer 62.5 million shares to institutional, high-net-worth, and individual investors, subject to regulatory approvals.

The issue is priced at a Price-to-Earnings (P/E) multiple of 10.93x, representing a 52 percent discount compared to the technology sector’s industry average P/E of 22.99x on the PSX. This attractive valuation is expected to generate significant interest, potentially leading to oversubscription.

According to the prospectus, IPO funds will finance working capital requirements, enhance operational scale, support logistics expansion, and upgrade technological infrastructure. Zarea reported a remarkable revenue increase of 144 percent to Rs 281 million in FY24, with profit after tax rising to Rs 292.8 million.

The IPO’s entire issue of 62.5 million shares will be offered through book-building, with 75 percent allocated to successful bidders and 25 percent available to retail investors. The shares will be offered at a minimum price of Rs 16, with potential increase up to Rs 22.4 per share.

Copyright Business Recorder, 2024