How many new companies did the Pakistan Stock Exchange get this year?

The Pakistan Stock Exchange (PSX) had five initial public offerings (IPOs) and two listings on the GEM Board this year compared to only one last year, as positive momentum encouraged companies to tap into public equity markets.

This year, the main board welcomed Secure Logistics (SLGL), TPL REIT Fund-I (TPLRF1), International Packaging (IPAK), Fast Cables (FCL), and BF Biosciences (BFBIO).

Meanwhile, Mughal Energy (GEMMEL) and Burj Clean Energy (GEMBCEM) were added to the GEM board.

Capital raised via IPOs this year reached its highest level since 2021, highlighting a strong appetite for new investment opportunities in the market.

The total demand for IPOs in 2024 amounted to PKR 13 billion ($46.4 million), with PKR 8.4 billion raised, resulting in a 1.6x oversubscription, according to a report issued by Arif Habib Limited.

In addition to IPOs, 10 companies issued right shares, raising PKR 18.3 billion, showcasing a consistent demand for capital expansion across various sectors.

In 2024, four companies were listed on the Pakistan Stock Exchange (PSX) through mergers, compared to three companies last year. The four companies are Stylers International, LSE Capital, UDL International, and Big Bird Foods.

Analysts say the IPO market in Pakistan has seen a significant revival in 2024, supported by an improved economic landscape and a strong performance by the stock market.

Key macroeconomic factors, including a downward inflation trajectory, monetary easing, and a stable currency, alongside the successful negotiation of an IMF Extended Funding Facility amounting to $7 billion, have created an attractive environment for equity offerings.

This has drawn investor interest and facilitated robust capital-raising activities on the PSX.

The KSE-100 index has surged by 42.4% since 2024's start, reflecting an overall positive sentiment and renewed investor interest.

Additionally, the KSE-100 index profitability skyrocketed by 24.4% during fiscal year 2024-25 (FY25) to a historic high of PKR 1.6 trillion.