Pakistan stock market is resurrecting from the impacts of coronavirus on the economy and in 2020, it had the best Initial Public Offering (IPO) run in five years.
Faseeh Mangi, who is associated with Bloomberg as a journalist, shared the statistics of the IPOs that were offered in the last five years in the Pakistan Stock Exchange (PSX) including those opened for public in 2020.
As per the definition on investopedia, “An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance. Public share issuance allows a company to raise capital from public investors”.
Pakistan had the best IPO run in five years. 2021 is expected to be beat this via @sohailkarachi /1 pic.twitter.com/6XqHyYGZIm
— Faseeh Mangi (@FaseehMangi) December 23, 2020
PSX opened four IPOs this year after a slow previous year when it issued only one.
The best of the last five years was 2015 when five IPOs were offered.
However, the next three years could not cross the bar set in 2015 and the number of IPOs remained constant, just three, consecutively from 2016 to 2018.
PSX encountered a terrible situation when only a single IPO was offered in 2019.
However, the stock market has bounced back in 2020 and four IPOs have come out in the year.
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Faseeh Mangi also compared the performance of some IPOs since they debut.
Organic meat best performed with an increase of 50% in its share value while Agha Steel remained second with a 15% increase.
However, Mohammed Sohail, a broker at PSX, is not completely satisfied and believes that the local stock market has far more potential than just four IPOs in a year.
He compared IPOs offered at PSX with that of the Bangladesh stock market which opened eight offerings in 2020.
Arif Habib Ltd, a leading online stock exchange & share trading firm, has forecasted 10 IPOs in 2021.