Zarea Limited IPO oversubscribed 1.9x

February 12, 2025 (MLN): The book-building process for the Initial Public Offering (IPO) of Zarea Limited (ZAL) concluded successfully, with the issue oversubscribed by 1.9x.

The determined strike price for ZAL shares is Rs16.5 per share, according to the Topline Securities, the Book Runner.

According to the report submitted to the Pakistan Stock Exchange (PSX), a total participation of Rs1.95 billion was recorded against the issue size of Rs1.0bn, reflecting strong investor interest.

 Out of 186 investors who took part in the book-building, 118 were successful in securing shares.

The breakdown of shares allocated among various investor categories reveals that commercial banks received the highest allocation with 4.37mn shares, followed by mutual funds with 6.49mn shares and securities brokers with 7.41mn shares.

Other categories, including Development Financial Institutions and Employees' Provident/Pension Funds, were also allocated shares, while insurance companies, investment banks, leasing companies, and modarabas did not receive any allocation.

The IPO process was facilitated by Topline Securities Limited and Growth Securities (Pvt.) Limited, with both firms managing investor participation and book-building operations.

The successful completion of the book-building phase marks a significant milestone for Zarea Limited, setting the stage for the public subscription phase and eventual listing on the PSX.

To note, Zarea Limited has decided to offer shares to the general public at a discounted price of Rs16 per share, reflecting a 3.03% reduction from the strike price of Rs16.5 set during the book-building process.

This goodwill gesture applies to subscriptions of 500, 1,000, 1,500, and 2,000 shares, while subscriptions exceeding 2,000 shares will be issued at the full strike price of Rs16.5.

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