KARACHI: The IPO (Initial Public Offer) market in Pakistan has seen a significant revival in CY24, supported by an improved economic landscape and a tremendous performance by the stock market, analysts said.
The key macros including downward inflation trajectory, monetary easing, stable currency alongside successful negotiation of IMF Extended Funding Facility amounting $7.0 billion have created an attractive environment for equity offerings, drawing investor interest and facilitating robust capital raising activities on the Pakistan Stock Exchange (PSX), a research report of Arif Habib Limited said.
The KSE-100 Index surged by 42.4 percent during CY24 to date, reflecting an overall positive sentiment and renewed investor interest, the report said. Also, the KSE-100 index profitability skyrocketed by 24.4 percent during FY24 to historic high level of Rs 1.6trillion.
The report said that the positive momentum in the stock market has encouraged companies to tap into public equity markets. A total of five (05) IPO transactions have been concluded in 2024, as compared to only one (01) transaction last year.
In 2024, the main board welcomed new listings including Secure Logistics (SLGL), TPL REIT Fund-I (TPLRF1), International Packaging (IPAK), Fast Cables (FCL), and BF Biosciences (BFBIO). Meanwhile, Mughal Energy (GEMMEL) and Burj Clean Energy (GEMBCEM) have been added on the GEM board.
The report said that capital raised via IPOs this year reached its highest since CY21, underscoring a strong appetite for new investment opportunities in
the market.
Total demand for IPOs in 2024 amounted to Rs 13billion, with Rs 8.4billion raised, resulting in a 1.6x oversubscription.
In addition to IPOs, 10 companies issued right shares, raising Rs 18.3billion, showcasing a consistent demand for capital expansion across various sectors.
In CY24, four companies were listed at PSX through merger, as compared to three companies last year. The four companies are Stylers International, LSE Capital, UDL International and Big Bird Foods.
Copyright Business Recorder, 2024
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