Pakistan’s IPO market witnessed a strong recovery in 2024, with five IPOs raising PKR 8.4 billion, reflecting renewed investor confidence amid improving economic conditions.
According to a report by Arif Habib Limited, key economic indicators such as downward inflation trend, monetary easing, stable currency and $7 billion IMF Expanded Financing Facility have collectively created a favorable environment for equity offerings on the Pakistan Stock Exchange (PSX).
The KSE-100 index has risen 42.4% in the 24th year to date, driven by positive investor sentiment and profitability, which rose 24.4% to reach a historic high of PKR 1.6 trillion.
This positive stock market performance has prompted more companies to access public equity markets, resulting in five IPOs and two additional listings on GEM’s board this year.
New listings include Secure Logistics (SLGL), TPL REIT Fund-I (TPLR1), International Packaging (IPAK), Fast Cables (FCL) and BF Biosciences (BFBIO) on the main board, with Mughal Energy (GEMMEL) and Mughal Energy (GEMMEL). Burj Clean Energy Company (GEMBCEM) joins the GEM Board of Directors.
The capital raised through IPOs this year represents the highest level since 2021, with a 1.6x oversubscription and total demand reaching PKR 13.0 billion.
In addition, 10 companies issued rights shares with a total value of PKR 18.3 billion, highlighting the continued demand for capital expansion.
The PSX has also seen four mergers this year, with companies such as Stylers International, LSE Capital, UDL International and Big Bird Foods listing through this route.