KARACHI: Initial public offering (IPO) activity at the Pakistan Stock Exchange (PSX) remained steady in 2025, with seven offerings completed during the year, matching last year’s tally, even as the total funds raised declined, reflecting smaller deal sizes rather than weaker demand.
Data compiled by Topline Securities Ltd showed that the seven offerings, including two GEM Board listings and one migration, raised Rs4.3 billion in 2025, compared with Rs8.4bn in 2024. Despite the lower proceeds, all IPOs were oversubscribed, signalling continued investor confidence in the equity market.
Market participants attribute the sustained IPO momentum to relative macroeconomic stability under the International Monetary Fund programme, improving investor sentiment, a supportive equity market outlook and a declining interest rate environment.
The benchmark KSE-100 index gained 47.9 per cent in rupee terms and 47.1pc in dollar terms during 2025 to date, underlining strong market performance. Trading activity also picked up, with average daily volume rising 40pc to 797 million shares, while daily traded value increased 64pc to Rs36.6bn.
Seven offerings raise Rs4.3bn as investor appetite stays firm
New main board listings during the year included Zarea Ltd (ZAL), Barkat Frisian Agro Ltd (BFAGRO), Image REIT (IRIET) and Pak Qatar Family Takaful Ltd (PQFTL). BlueEx migrated from the GEM Board to the main board, while Nets International Communication (GEMNETS) and Pakistan Credit Rating Agency (GEMPACRA) were added to the GEM platform.
Among the new listings, Zarea Ltd emerged as the best-performing IPO, delivering a return of 202pc during 2025 to date.
Global IPO market gathers pace
IPO activity also strengthened globally, according to Ernst & Young (E&Y). A total of 914 IPOs were recorded during the first nine months of 2025, raising $110 billion, compared with 870 offerings that raised $78bn in the same period last year.
The expansion has been driven largely by larger deal sizes, supported by robust equity markets, monetary easing and more accommodative financial conditions.
While geopolitical and macroeconomic risks persist, investor sentiment has continued to improve, with such risks increasingly viewed as part of a “new normal” rather than an episodic shock.
Looking ahead, Topline Securities expects IPO activity in 2026 to remain strong, supported by a healthy pipeline, improving economic conditions and a lower interest rate environment.
Published in Dawn, December 26th, 2025