Special Correspondent
Key Points
• Pakistan could see up to 16 IPOs over the next seven months, compared with 11 in the past three years
• KSE-100 Index has gained over 47% this year, extending a three-year bull run
• Upcoming IPOs include companies from consumer, pharmaceuticals, and automotive sectors
• Firms are using IPOs to fund expansion and benefit from increased domestic investor participation
ISLAMABAD: Pakistan’s stock market rally and growing retail participation are attracting companies back to the equity market, setting the stage for a potentially record year for initial public offerings (IPOs) in 2026.
Investment banks Arif Habib Ltd. and Ktrade Securities Ltd. report a combined pipeline of up to 16 IPOs over the next seven months, compared with 11 listings over the past three years.
The benchmark KSE-100 Index has surged over 47% this year, making it one of the world’s best-performing markets. Analysts say strong domestic investor interest has extended the bull market into its third year, and the trend is partly fueled by improved macroeconomic stability, government incentives for listed companies, and favorable interest rate conditions.
Pakistan’s IPO market has historically been cyclical, with listings often concentrated around periods of strong economic growth. The previous three years saw only 11 IPOs, limited by regulatory uncertainty, currency volatility, and low investor confidence. The current surge signals a renewed appetite for equity participation among retail and institutional investors.
Companies are preparing IPOs to raise funds for expanding production capacity and to capitalize on anticipated economic growth. Several are also aiming to strengthen corporate governance, improve market visibility, and attract foreign investment. The upcoming offerings span the consumer, pharmaceuticals, and automotive sectors, among others, reflecting Pakistan’s diversified industrial base.
Market pundits are of the view suggest that if the momentum continues, 2026 could mark the most active IPO year in Pakistan in over a decade, providing a boost to the broader financial market and offering investors opportunities in high-growth sectors.
