IPO activity remains robust at Pakistan Stock Exchange in 2025

Initial public offering (IPO) activity picked up at the Pakistan Stock Exchange (PSX) in 2025, with seven offerings raising a combined Rs4.3 billion, according to Topline Research.

The number of IPOs matched 2024 levels, when the exchange also hosted seven listings, signaling sustained capital market activity. While the total funds raised fell from Rs8.4 billion last year, all offerings were oversubscribed, highlighting strong investor demand. “Despite a lower quantum of capital raised, investor appetite remained robust, with every issue seeing oversubscription,” the report said.

Topline Research attributed the IPO momentum to macroeconomic stability under Pakistan’s IMF program, improving investor confidence, and a declining interest-rate environment. Market sentiment remained upbeat throughout the year, with the benchmark KSE-100 Index rising 47.9% in rupee terms and 47.1% in dollar terms year to date. Average daily trading volume climbed 40% to 797 million shares, while daily traded value increased 64% to Rs36.6 billion.

Four companies listed on the PSX main board in 2025 — Zarea Ltd., Barkat Frisian Agro Ltd., Image REIT, and Pak Qatar Family Takaful Ltd. BlueEx migrated from the GEM Board to the main board, while Nets International Communication and Pakistan Credit Rating Agency were added to the GEM Board. Topline acted as adviser on two of the four main-board IPOs.

Zarea Ltd. emerged as the best-performing IPO of the year, delivering a 202% return year to date. “Zarea’s performance underscores the strong investor interest in technology-driven business models,” the report noted.

Globally, IPO activity also showed growth. Ernst & Young data cited by Topline indicated 914 IPOs worldwide through the first nine months of 2025, raising $110 billion, compared with 870 IPOs raising $78 billion a year earlier. Larger deal sizes, easing monetary conditions, and resilient equity markets drove the increase. “Geopolitical risk is increasingly viewed as part of the new normal rather than a one-off shock,” Topline said, noting that investor sentiment has remained positive despite ongoing uncertainties.

Sector highlights

• Zarea Ltd. raised Rs1.03 billion in February by offering 62.5 million shares at Rs16.50 each, oversubscribed 1.9 times. Proceeds will expand its customer base, logistics fleet, and digital platform.
• Barkat Frisian Agro Ltd. raised Rs1.23 billion through a February IPO of 67.7 million shares at Rs18.20 each, with demand exceeding supply 16.25 times. Funds will support a new production facility in Faisalabad.
• Image REIT raised Rs921 million in September by offering 92 million shares at Rs10 each, oversubscribed 2.1 times. Proceeds will complete construction of its development component.
• Pak Qatar Family Takaful Ltd. raised Rs901 million in December by selling 50 million shares at Rs18 each, attracting 3.2 times subscription. Funds will expand its digital footprint, strengthen solvency, and meet regulatory capital requirements.

Looking ahead, Topline expects IPO activity to remain strong in 2026. “A healthy pipeline, improving economic conditions, and a lower interest-rate environment should continue to support new listings,” the report concluded.