The Pakistan Stock Exchange (PSX) witnessed momentum in initial public offering (IPO) activity in 2025, with a total of 7 offerings recorded, including 2 GEM Board listings and one migration. This momentum mirrors 2024, when the bourse also hosted seven IPOs, underscoring sustained capital market activity, according to a report by Topline Pakistan Research.
The total amount raised from investors through the seven offerings (including migration) in 2025 stood at Rs4.3bn, down from Rs8.4bn in the previous year. Despite the lower quantum of funds raised, investor appetite remained robust, as all offerings were oversubscribed, reflecting strong market enthusiasm.
§ This sustained IPO momentum is largely a continuation of last year’s trend, driven by macroeconomic stability under the IMF programme, improving investor confidence, positive equity market sentiment, and a declining interest rate environment.
§ The benchmark KSE-100 Index surged significantly by 47.9% in PKR terms and 47.1% in US$ terms in 2025 to date, reflecting overall positive sentiment and renewed investor interest.
§ The average daily traded volume has also increased by 40%, reaching 797mn shares, while the daily traded value has risen by 64% to Rs36.6bn during 2025TD.
§ In 2025, new listings on the main board included Zarea Limited (ZAL), Barkat Frisian Agro Limited (BFAGRO), Image REIT (IRIET), and Pak Qatar Family Takaful (PQFTL). There was one migration of BlueEx from the GEM Board to the Main Board, while two companies were added to the GEM Board: Nets International Communication (GEMNETS) and Pakistan Credit Rating Agency (GEMPACRA). To highlight, out of 4 main board listing, Topline was advisor in 2 listing in 2025.
§ In terms of performance, ZAL was the best-performing IPO in 2025, delivering a return of 202% in 2025TD, in which the topline was the advisor.
§ The global IPO market has also gained momentum. According to Ernst & Young (E&Y), a total of 914 IPOs were recorded through 9M2025, raising US$110bn, compared with 870 IPOs that raised US$78bn during the same period last year. The growth in IPO activity is primarily driven by larger deal sizes, supported by robust equity markets, monetary easing, and more accommodative financial conditions. Despite ongoing geopolitical and macroeconomic uncertainties, investor sentiment continues to improve. Geopolitical risk is increasingly being viewed as part of the “new normal”—a persistent backdrop to market dynamics rather than a one-off shock.
Outlook for 2026:
We expect IPO activity in 2026 to remain strong compared with 2025, supported by a healthy pipeline of offerings, improving economic conditions, and a lower interest rate environment.
On the mainboard, four companies raised funds through IPOs. These companies represented various sectors, including Technology, Food & Personal Care, Real Estate Investment, and Insurance.
Zarea Limited (ZAL): Zarea is one of the leading digital technology companies specializing in Pakistan’s commodity trading market. The primary purpose of the IPO is to achieve growth by increasing its customer base and improving the user interface of its online platform. For this purpose, the company is raising capital to meet its working capital needs, establish its own logistics fleet, and upgrade its online platform. The company offered 62.5mn shares at a strike price of Rs16.5/share, raising Rs1,031mn in Feb, 2025 with an oversubscription of 1.9x.
Barkat Frisian Agro Limited (BFAGRO): BFAGRO is Pakistan’s only producer of pasteurized egg products. It is a Pakistan-Dutch Joint venture between Buksh Group and Frisian Egg International B.V., which is a Dutch company. The company raised funds to set up a new facility in Faisalabad, which will increase production capacity by 12,000 tons, bringing total capacity to 29,000 tons. This expansion will enable the company to explore new export opportunities and target new customers in the local market. The company offered 67.7mn shares at a strike price of Rs18.2/share, raising Rs1,232 million in Feb 2025 with an oversubscription of 16.25x.
Image REIT (IREIT): Image REIT is a hybrid REIT scheme having both Rental and Developmental Components managed by Sino Link RMC. The principal activity of IREIT is to invest directly in real estate assets to generate sustainable income and long-term returns for investors through rental income, capital appreciation, and value creation. The principal purpose of the Issue is to raise funds to complete the construction of the Developmental Component. The company offered 92.0mn shares at a strike price of Rs 10.0/share, raising Rs 921mn in Sep, 2025 with an oversubscription of 2.1x.
Pak Qatar Family Takaful (PQFT): Pak Qatar Family Takaful Limited (PQFTL) is Pakistan’s largest dedicated family takaful company, which offers comprehensive Takaful and investment solutions. The company raised funds to be utilized for: (1) Expansion of Digital Footprint, (2) Strengthening Solvency and Enhancing Underwriting Capacity, and (3) Compliance with Minimum Paid-up Capital requirements. The company offered 50mn shares at a strike price of Rs18.0/share, raising Rs901mn in Dec, 2025, with an oversubscription of 3.2x.
