Pakistan Stock Exchange Eyes 16 IPOs in 2026 Amid Record-Breaking Rally

Pakistan’s stock market is showing stubborn resilience as it gears up for a potentially landmark year in 2026. The benchmark KSE 100 Index has ascended more than 47% this year, marking consecutive gains that have placed it among the world’s top performing markets.

Bloomberg reported on Wednesday that the stellar performance of the Pakistan Stock Exchange (PSX) is once again brimming with investor confidence, encouraging companies to tap the equity market. Bankers said this could make 2026 a pivotal year for initial public offerings (IPOs).

According to the report, two leading investment banks Arif Habib Limited and KTrade Securities Limited have a combined pipeline of 16 IPOs over the next seven months.

The KSE 100 Index has ascended to the apex this year, and with valuations reaching long term averages, the likelihood of new offerings returning is now indispensable for companies seeking capital.

Shahid Ali Habib, CEO of Arif Habib, told Bloomberg that current market valuations are attractive for equity fundraising and reiterated that eight IPOs could come by June. He said currency stability and a favorable interest rate environment are pivotal supportive factors for capital markets.

Arif Habib noted that some companies in the consumer, pharmaceutical, and auto sectors are approaching the equity market to expand production, expecting benevolent economic growth.

Meanwhile, KTrade Securities CEO Khalil Usmani said they expect to manage six public offerings in the next six months. Among the pipeline companies, Arif Habib highlighted Service Long March Tyres Limited, which plans to raise approximately Rs 6.5 billion by April.

KTrade’s managing director, Omar Salah Ahmed, told Bloomberg that Saraaf, a commodity sourcing startup that raised Rs 1.5 billion on Shark Tank in 2024, is also planning to enter the market. Metco Foods Limited intends to spin off its ‘Falak Foods’ unit.

Ahmed said he expects 2026 to be a record breaking year for IPOs, as valuations have finally reached levels where sponsors are seriously considering listing.

The report noted that the KSE 100 Index has increased more than 300% over the past three years, but there are signs the market is precariously heated, trading at roughly eight times forward earnings, compared to a long term average of 6.4 times.

Bloomberg also reported that foreign investors have been net sellers in the Pakistan Stock Exchange in nine of the past 11 years, withdrawing $321 million in 2025 the highest since 2021.