PSX CEO predicts 'significantly higher' growth of IPOs this year

• Seven firms raised Rs17 billion in the fiscal year 2020-21.
• “There is a full pipeline of companies planning to list," Farrukh Khan says.
• PSX has rebounded around 70% from its pandemic lows in March 2020.

In line with economic recovery, the growth momentum of the initial public offering (IPO) is expected "to gain pace in the coming months", said Pakistan Stock Exchange (PSX) CEO and Managing Director Farrukh Habib Khan.

According to data compiled by Bloomberg, seven companies raised an unprecedented Rs17 billion ($100 million) in the fiscal year 2020-21.

In an interview with Bloomberg, Khan said: "The total for the current year will be “significantly higher".

“There is a full pipeline of companies planning to list," Khan added.

“IPOs happen because people need capital, so you need good things happening at the exchange level; that the exchange is functioning well, there’s ample liquidity, investors are available and the valuations are good," the CEO said.

Khan cited the two recent historic IPOs — Air Link Communications and Octopus Digital — as evidence that current weakness in the markets won’t "deter potential applicants."

According to the international publication, Pakistan’s benchmark index has rebounded about 70% from its pandemic lows in March 2020, it is up just 1.6% this year, "underperforming most of its global peers."