Initial public offering (IPO) activity at the Pakistan Stock Exchange (PSX) remained steady in 2025, with seven IPO-related transactions raising a total of Rs4.3 billion. While the number of IPOs remained unchanged compared with 2024, the value of funds raised was lower than Rs8.4 billion in the previous year, reflecting smaller issue sizes rather than weaker investor demand, according to data compiled by Topline Securities.
Despite lower proceeds, all IPOs were oversubscribed, indicating sustained participation from domestic and institutional investors. New main board listings during the year included Zarea Ltd, Barkat Frisian Agro Ltd, Image REIT, and Pak Qatar Family Takaful Ltd. BlueEx transitioned from the GEM Board to the main board, while Nets International Communication and Pakistan Credit Rating Agency were listed on the GEM platform.
Among the new listings, Zarea Ltd delivered the strongest performance, recording an exceptional return of 202% in 2025 to date. Market participants attributed the continued flow of IPOs to relative macroeconomic stability under the International Monetary Fund programme, improved investor sentiment, a supportive equity market outlook, and a declining interest rate environment.
The benchmark KSE-100 Index rose 47.9% in rupee terms and 47.1% in dollar terms during 2025 to date. Average daily trading volume increased by 40% to 797 million shares, while average daily traded value climbed 64% to Rs36.6 billion, reflecting heightened activity and investor engagement in the equity market.
Globally, IPO activity also strengthened in 2025, according to Ernst & Young. A total of 914 IPOs were completed worldwide in the first nine months of the year, raising $110 billion, compared with 870 offerings that generated $78 billion during the same period in 2024. The increase was driven primarily by larger deal sizes supported by robust equity markets and easing monetary conditions.
Looking ahead, Topline Securities expects IPO activity in Pakistan to remain firm in 2026, supported by a healthy pipeline of listings, improving economic indicators, and a lower interest rate environment. Continued investor confidence and a positive equity market outlook are anticipated to sustain the momentum of IPO activity in the coming year.
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