Zarea Limited Fully Utilizes IPO Proceeds, Leaves Nothing on the Table

Zarea Limited Fully Utilizes IPO Proceeds, Leaves Nothing on the Table

Zarea Limited (PSX: ZAL) has fully utilized the proceeds raised from its Initial Public Offering (IPO), with external auditors M/s. Naveed Zafar Ashfaq Jaffery & Company confirming no discrepancies in the utilization process. The company raised Rs1.03 billion through the issuance of 62.5 million ordinary shares (face value Re.1 each), making 23.81% of its post-IPO share capital available to the public and institutional investors. Shares were successfully listed on the Pakistan Stock Exchange on February 28, 2025.

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After accounting for a return on mutual fund investments of Rs53.27 million and share issuance expenses of Rs51.02 million, net IPO proceeds available for utilization stood at Rs1,031,822,921. These were fully deployed through working capital settlement (Rs475.46 million) and project expenditures (Rs556.36 million), leaving zero unutilized proceeds as of March 31, 2026.

AspectDetail
Total IPO ProceedsRs1,029,579,750
Shares Issued62,500,000 ordinary shares
Face ValueRe.1 per share
Post-IPO Public Stake23.81%
Listing DateFebruary 28, 2025
Net Proceeds UtilizedRs1,031,822,921
Unutilized ProceedsZero (as of March 31, 2026)

Project Expenditures (W-1)

Project expenditures under W-1 were broken down as follows:

CategoryAmount (Rs)
Logistics240 million
Technology125 million
Marketing81.36 million
Office CAPEX & Vehicles60 million
Human Resources50 million
Total Project ExpendituresRs556.36 million

Commitments Completed

All six commitments outlined in the prospectus—Working Capital, Logistics, Technology, Marketing, Office & Cars, and Human Resource—have been marked Completed with no delays reported. The company’s working capital settlement amounted to Rs475.46 million.

Auditor Verification

The Agreed Upon Procedures (AUP) report, prepared in accordance with ISRS 4400 (Revised) , found no discrepancies across all five procedures performed, including verification of bank statements, books of accounts, implementation status calculations, mutual fund profits, and prospectus commitments.

About Zarea Limited

Zarea Limited (PSX: ZAL) is a Pakistani company that successfully completed its IPO and listing on the Pakistan Stock Exchange in February 2025. The company has fully deployed its IPO proceeds across working capital and project expenditures as outlined in its prospectus.

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