Frontier is maintaining its current equity shareholding at 30%, which will be valued at US$27 million upon conclusion of the capital raising, according to a statement released by the company.
Zameen will raise the capital by way of an equal access rights issue to existing shareholders.
Under the proposed issue, new shares are being offered to existing shareholders that value the company at US$83 million. The valuation reflects the rapid growth of the business across all key metrics, its dominant market position and the size of the market in Pakistan, and is consistent with the valuation multiples used on past capital raisings from new investors.
The new funds will be used by Zameen to extend the website's market leadership position, increase brand awareness with consumers and for investment in new product innovation for advertisers.
Frontier says its strategy is to partner with local entrepreneurs running market leading online classifieds businesses in frontier markets.
FDV’s Chief Executive Officer, Shaun Di Gregorio said he was excited about the partnership with the Pakistani portal.
“Zameen.com is the market leading property portal in Pakistan with a dominant position in one of the largest and fastest growing frontier markets on the globe and is run by an ‘A grade’ management team. The business is a great example of the value that can be created in online classifieds in frontier markets and validates our strategy of partnering with local entrepreneurs running market leading online classifieds businesses”.