Initial public offering (IPO) activity at the Pakistan Stock Exchange (PSX) remained steady throughout 2025, with seven IPO-related transactions collectively raising Rs4.3 billion, according to data compiled by Topline Securities. While the number of transactions was unchanged from the previous year, the total amount raised declined from Rs8.4 billion in 2024, reflecting smaller issue sizes rather than any deterioration in investor appetite.
Despite the lower aggregate proceeds, all IPOs completed during the year were oversubscribed, indicating that demand for new equity offerings remained resilient. Market participants viewed this as a positive signal for the equity market, suggesting that investors continue to actively seek opportunities even as companies opt for more modest fundraising targets.
Several new companies made their debut on the PSX main board in 2025, including Zarea Ltd, Barkat Frisian Agro Ltd, Image REIT, and Pak Qatar Family Takaful Ltd. In addition to fresh listings, BlueEx transitioned from the Growth Enterprise Market (GEM) Board to the main board, reflecting its progression within the capital market framework. Meanwhile, Nets International Communication and Pakistan Credit Rating Agency were listed on the GEM platform, highlighting ongoing activity across different market segments.
Among the new listings, Zarea Ltd emerged as the standout performer. The company delivered the strongest post-listing return, recording a gain of 202% during 2025 to date. Its performance reinforced investor confidence in select growth-oriented companies and underscored the potential for strong returns even in a market characterized by cautious capital raising.
Analysts attributed the continued flow of IPOs to a combination of supportive macroeconomic and market factors. Relative economic stability under Pakistan’s ongoing programme with the International Monetary Fund has played a role in improving overall sentiment. In addition, expectations of declining interest rates, a supportive equity market outlook, and improved liquidity conditions have encouraged both issuers and investors to remain engaged with the primary market.
The broader performance of the equity market during the year provided a favourable backdrop for IPO activity. The benchmark KSE-100 Index posted a strong gain of 47.9% in rupee terms during 2025 to date, while the return in dollar terms stood at 47.1%. Market activity also intensified, with average daily trading volume rising 40% to 797 million shares. At the same time, average daily traded value increased by 64% to Rs36.6 billion, reflecting heightened participation and improved market depth.
The local IPO trend mirrored developments in global capital markets, where primary market activity also showed signs of recovery. According to data from Ernst & Young, a total of 914 IPOs were completed worldwide during the first nine months of 2025, raising approximately $110 billion. This marked an increase compared with 870 IPOs that raised $78 billion during the same period in the previous year. The global improvement was largely driven by larger deal sizes, firmer equity markets, and easing monetary conditions in several major economies.
Looking ahead, market observers remain cautiously optimistic about IPO prospects in Pakistan. Topline Securities expects IPO activity in 2026 to remain firm, supported by a healthy pipeline of potential listings, improving economic indicators, and a lower interest rate environment. Analysts believe that if macroeconomic stability is maintained and investor confidence continues to strengthen, the primary market could see both a rise in deal sizes and broader sector participation.
Overall, the performance of IPOs in 2025 suggests that Pakistan’s equity market is gradually regaining momentum. While fundraising volumes were lower than the previous year, sustained oversubscription and strong secondary market performance indicate that investor interest remains intact. As economic conditions evolve, the IPO market is expected to play an increasingly important role in capital formation and market development at the Pakistan Stock Exchange.
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