Initial public offering (IPO) activity at the Pakistan Stock Exchange (PSX) remained steady in 2025, showing continued investor interest despite lower total proceeds. According to data compiled by Topline Securities, seven IPO-related transactions were completed during the year, the same number as in 2024.
However, the total amount raised stood at Rs4.3 billion, compared with Rs8.4 billion last year. The decline in value was mainly due to smaller issue sizes, not weaker demand.
All IPOs launched in 2025 were oversubscribed, highlighting strong participation from investors. New companies listed on the main board included Zarea Ltd, Barkat Frisian Agro Ltd, Image REIT, and Pak Qatar Family Takaful Ltd.
In addition, BlueEx moved from the GEM Board to the main board, while Nets International Communication and Pakistan Credit Rating Agency were listed on the GEM platform.
Among these listings, Zarea Ltd emerged as the top performer, delivering a return of over 200 percent during 2025 so far.
Market experts believe the steady IPO flow reflects improving macroeconomic conditions under the International Monetary Fund programme, better investor confidence, a positive outlook for equities, and falling interest rates.
The broader stock market also performed strongly. The benchmark KSE-100 Index gained nearly 48 percent in both rupee and dollar terms during the year to date.
Average daily trading volume rose 40 percent to 797 million shares, while daily traded value increased 64 percent to Rs36.6 billion.
Globally, IPO activity improved as well. Ernst & Young reported 914 IPOs worldwide in the first nine months of 2025, raising $110 billion.
Looking ahead, Topline Securities expects IPO activity in 2026 to remain firm, supported by a strong pipeline and improving economic indicators.