Islamabad, Oct 27: PSX in 2024, A Landmark Year for IPOs as Rs. 8.4 Billion Raised to Date. With the help of the stock market’s outstanding performance and an improved economic environment, Pakistan’s IPO market has experienced a notable resurgence in CY24.
A report by Arif Habib Limited claims that the successful negotiation of the USD 7 billion IMF Extended Funding Facility, along with important macro factors like a downward inflation trajectory, monetary easing, and stable currency, have created an environment that is favorable for equity offerings, attracting investor interest and enabling strong capital raising activities on the Pakistan Stock Exchange (PSX).
CY24TD saw a 42.4 percent increase in the KSE-100 Index, indicating revived investor interest and general optimism. Additionally, the profitability of the KSE-100 index surged by 24.4 percent in FY24, reaching a record high of Rs. 1.6 trillion.
Companies have been encouraged to access public equity markets by the stock market’s favorable momentum. Five (5) initial public offerings (IPOs) have been completed in 2024, compared to just one (1) last year.
Secure Logistics (SLGL), TPL REIT Fund-I (TPLRF1), International Packaging (IPAK), Fast Cables (FCL), and BF Biosciences (BFBIO) were among the new listings that were accepted by the main board in 2024. In the meantime, the GEM board now includes Burj Clean Energy (GEMBCEM) and Mughal Energy (GEMMEL).
This year’s IPO capital raised was the largest since CY21, indicating a robust market appetite for new investment options. A 1.6x oversubscription occurred in 2024 when IPOs raised Rs. 8.4 billion out of a total demand of Rs. 13.0 billion.
Ten businesses raised Rs. 18.3 billion by issuing the appropriate shares in addition to IPOs, demonstrating a steady need for capital development across a range of industries. Compared to three companies the previous year, four companies were listed at PSX through a merger in CY24. Stylers International, LSE Capital, UDL International, and Big Bird Foods are the four businesses.
Initial Public Offerings (IPOs) for equity in CY24
The holding company for four fully owned operating subsidiaries is Secure Logistics Group Ltd. (SLGL), formerly known as Asia Capital Partners (Pvt.) Limited. These subsidiaries are 1) SecurLog (Pvt.) Limited, 2) Secure Track (Pvt.) Limited, 3) Fist Security (Pvt.) Limited, and 4) TDM (Pvt.) Limited. Secure Logistics Group Ltd. was founded in 2013.
Logistics, car fleet management, security services, and commodities trading/indenting are the separate activities of these subsidiaries. Asia Capital Partners (Pvt.) Ltd. changed its name to Secure Logistics Group Limited in August 2016.
By utilizing a distinct set of horizontal synergies, the company has evolved into an integrated provider of security, asset tracking, monitoring, and logistical services. The logistics and vehicle tracking activities exhibit significant synergies, and the security services also benefit the logistics and vehicle tracking industries.
The company International Packaging Films Ltd. (IPAK) is focused on manufacturing films made of biaxially oriented polypropylene (BOPP). IPAK purchased a 41,360-ton-per-year production line in 2017 that can produce films of different thicknesses and grades.
