The Pakistan Stock Exchange (PSX) recorded its best year for Initial Public Offerings (IPOs) since 2021, raising Rs8.4 billion through seven offerings in 2024, including two on the GEM Board, according to Topline Research. This marked a significant improvement from just one IPO in 2023, reflecting renewed investor confidence.
The five IPOs on the Main Board included Secure Logistics (SLGL), TPL REIT Fund-I (TPLRF1), International Packaging (IPAK), Fast Cables (FCL), and BF Biosciences (BFBIO).
Two GEM Board listings featured Mughal Energy (GEMMEL) and Burj Clean Energy (GEMBCEM). All offerings were oversubscribed, highlighting the robust demand for equity investment.
Key drivers of this momentum included macroeconomic stability under the IMF program, positive market sentiment, falling interest rates, and political stability. The benchmark KSE-100 Index surged 83% in PKR terms and 85% in USD terms, while daily traded volume increased by 69% to 545 million shares, and traded value rose by 108% to Rs21 billion.
The most notable IPOs on the Main Board included:
(i) Secure Logistics Group Limited (SLGL): Raised Rs600 million at Rs12 per share in August with a 1.02x oversubscription. Funds were aimed at deleveraging the balance sheet and enhancing tech infrastructure for regional expansion.
(ii) TPL REIT Fund-I (TPLRF1): Generated Rs589 million at Rs17.6 per share in May, oversubscribed by 1.46x. The REIT focused on compliance, foreign investor interest, and price discovery.
(iii) International Packaging (IPAK): Raised Rs1.77 billion in June at Rs25.2 per share, oversubscribed by 1.73x. The funds supported a Rs22 billion expansion project to boost BOPP and BOPET film production.
(iv) Fast Cables (FCL): Secured Rs3.13 billion in June at Rs24.5 per share, oversubscribed by 1.57x. The funds financed land acquisition, infrastructure development, and machinery installation.
(v) BF Biosciences Limited (BFBIO): Raised Rs1.93 billion at Rs77 per share in August, oversubscribed by 3.4x. Proceeds supported post-expansion working capital, machinery purchases, and export certifications.
Pakistan’s IPO performance stood out globally, outperforming a declining international IPO market. According to Ernst & Young, global IPOs dropped to 870 offerings, raising $78 billion by September 2024, compared to 983 IPOs raising $101 billion in the same period last year.
Looking ahead, analysts expect 2025 to be another strong year for IPOs, driven by increased market valuations, ample liquidity, and shifting investment preferences from fixed income to equities. This trend is likely to encourage more companies across diverse sectors to enter the market.
