Pakistan’s IPO market revives with five new listings in 2024, raises Rs8.4 billion

Pakistan’s Initial Public Offering (IPO) market has witnessed a strong revival in 2024, with five IPOs successfully raising PKR 8.4 billion, reflecting renewed investor confidence amid improved economic conditions. 

According to Arif Habib Limited’s report, key economic indicators such as a downward inflation trend, monetary easing, stable currency, and a $7 billion IMF Extended Funding Facility have collectively created a favourable environment for equity offerings on the Pakistan Stock Exchange (PSX).

The KSE-100 Index surged by 42.4% in CY24 to date, driven by positive investor sentiment and profitability, which rose by 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, leading to five IPO transactions and two additional listings on the GEM board this year.

Among the new listings are 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 Burj Clean Energy (GEMBCEM) joining the GEM board. 

The capital raised through IPOs this year marks the highest level since 2021, with a 1.6x oversubscription and total demand reaching PKR 13.0 billion.

Additionally, 10 companies issued rights shares totaling PKR 18.3 billion, highlighting sustained demand for capital expansion. 

The PSX also saw four mergers this year, with companies like Stylers International, LSE Capital, UDL International, and Big Bird Foods being listed through this route.