Karachi: The Pakistan Stock Exchange (PSX) experienced a notable increase in initial public offering (IPO) activity in 2025, with seven offerings, including two GEM Board listings and one migration. This trend mirrors that of 2024, highlighting consistent activity within the capital market.
In total, companies raised Rs4.3 billion from investors through these offerings, compared to Rs8.4 billion in the previous year. Despite the decrease in funds raised, all offerings were oversubscribed, demonstrating strong investor interest and market enthusiasm.
The sustained IPO momentum is attributed to macroeconomic stability under the IMF program, improved investor confidence, positive equity market sentiment, and a declining interest rate environment. The benchmark KSE-100 Index saw a significant surge of 47.9% in PKR terms and 47.1% in USD terms, underscoring the positive market sentiment.
The average daily traded volume increased by 40% to 797 million shares, with the daily traded value rising by 64% to Rs36.6 billion in 2025. New listings on the main board included Zarea Limited, Barkat Frisian Agro Limited, Image REIT, and Pak Qatar Family Takaful, with BlueEx migrating from the GEM Board to the main board. Two companies joined the GEM Board: Nets International Communication and Pakistan Credit Rating Agency.
Zarea Limited emerged as the best-performing IPO, delivering a return of 202% in 2025. Globally, the IPO market also gained momentum, with 914 IPOs raising US$110 billion in the first nine months of 2025, according to Ernst & Young. This growth is driven by larger deal sizes and robust equity markets.
Looking ahead, IPO activity in 2026 is expected to remain strong, supported by a healthy pipeline of offerings, improving economic conditions, and a lower interest rate environment. The four main board IPOs in 2025 spanned sectors such as Technology, Food & Personal Care, Real Estate Investment, and Insurance.
Zarea Limited, focusing on commodity trading, raised Rs1,031 million in February 2025 to expand its customer base and enhance its online platform. Barkat Frisian Agro Limited, a joint venture with Frisian Egg International, raised Rs1,232 million to establish a new facility in Faisalabad, increasing production capacity.
Image REIT, a hybrid scheme, raised Rs921 million in September 2025 to complete its developmental component. Pak Qatar Family Takaful, the largest family takaful company in Pakistan, raised Rs901 million in December 2025 for digital expansion and capital compliance.
The IPO activity at PSX reflects a broader global trend of increased market activity, driven by economic stability and positive investor sentiment, despite ongoing geopolitical uncertainties.