Pakistan’s stock market is showing renewed momentum, with a strong rally and rising retail investor activity encouraging companies to return to the equity market, Bloomberg reports. Analysts suggest that 2026 could become a record year for initial public offerings (IPOs), though certain risks persist. Currently, the market trades at nearly eight times forward earnings, above its long-term average of 6.4, while foreign investors have continued net selling, withdrawing $321 million this year.
According to Arif Habib Limited and Ktrade Securities Limited, the combined IPO pipeline could reach up to 16 listings by mid-2026, significantly higher than the 11 IPOs seen over the past three years. The KSE-100 Index has surged over 47 percent in 2025, and with valuations returning to long-term averages, conditions are favorable for raising capital.
Shahid Ali Habib, CEO of Arif Habib, highlighted that a stable rupee and supportive interest-rate environment are motivating companies—particularly in consumer goods, pharmaceuticals, automotive, and manufacturing sectors—to pursue listings to fund capacity expansion. Ktrade anticipates at least six IPOs in the next six months, while JS Global plans a similar number next year. Notable potential deals include Service Long March Tyres Ltd. aiming to raise Rs. 6.5 billion, as well as Saraaf and Matco Foods’ listing of Falak Foods.
Retail investor participation is also boosting market confidence. Around 36,000 new trading accounts were opened in the September quarter, up from 23,600 previously, and daily trading turnover surpassed $200 million in October, reaching the highest levels since 2017. This combination of market performance, corporate interest, and active retail involvement underscores a strong start to the 2026 IPO season in Pakistan.
