Bankers Predict 2026 to Be a Record IPO Year at PSX With Up to 16 Listings

Pakistan’s strong stock rally and rising retail activity are driving companies back to the equity market, reported Bloomberg. Bankers say 2026 could be a record IPO year, though risks remain. The market is trading at nearly 8 times forward earnings, above its long-term average of 6.4, and foreign investors continue to sell and withdraw $321 million this year. Arif Habib Limited and Ktrade Securities Limited report a combined pipeline of up to 16 listings by mid-2026, far above the 11 IPOs seen over the past three years. The KSE-100 Index has jumped over 47 percent this year. With valuations back to long-term averages, bankers say conditions are ideal for raising capital. Arif Habib, CEO, Shahid Ali Habib, said the stable rupee and supportive interest-rate environment are encouraging companies, mainly in consumer, pharma, auto, and manufacturing sectors, to pursue listings to expand capacity. Ktrade expects at least six IPOs in the next six months, while JS Global plans as many as six next year. Major deals in the pipeline include Service Long March Tyres Ltd. wanting to raise Rs. 6.5 billion, Saraaf, and Matco Foods’ listing of Falak Foods. Retail participation is also lifting confidence. Around 36,000 new trading accounts were opened in the September quarter, up from 23,600 previously, while daily trading turnover crossed $200 million in October, the highest since 2017.