Initial public offering (IPO) activity at the Pakistan Stock Exchange (PSX) remained steady in 2025, with seven IPO-related transactions raising Rs4.3 billion, unchanged in count from last year but lower in value compared with Rs8.4 billion raised in 2024, reflecting smaller issue sizes rather than weaker demand, according to data compiled by Topline Securities.
Despite lower proceeds, all offerings were oversubscribed, indicating sustained investor participation in the equity market.
New main board listings during the year included 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 listed on the GEM platform.
Among the new listings, Zarea Ltd recorded the strongest performance, delivering a return of 202p% during 2025 to date.
Market participants attributed the continued IPO flow to relative macroeconomic stability under the International Monetary Fund programme, improved investor sentiment, a supportive equity market outlook and a declining interest rate environment.
The benchmark KSE-100 Index rose 47.9% in rupee terms and 47.1% in dollar terms during 2025 to date. Average daily trading volume increased 40% to 797 million shares, while average daily traded value rose 64% to Rs36.6 billion.
Globally, IPO activity also strengthened, according to Ernst & Young. A total of 914 IPOs were completed worldwide in the first nine months of 2025, raising $110bn, compared with 870 offerings that raised $78 billion in the same period last year.
The increase was driven mainly by larger deal sizes supported by firm equity markets and easing monetary conditions. Looking ahead, Topline Securities expects IPO activity in 2026 to remain firm, supported by a healthy pipeline, improving economic indicators and a lower interest rate environment.
