ABHI Microfinance Bank plans to raise up to Rs. 3 billion through an initial public offering (IPO) of 132 million ordinary shares on the Pakistan Stock Exchange (PSX), with a floor price of Rs. 15 per share.
According to disclosures submitted to the PSX, the book-building process will take place on November 5 and 6, while the retail subscription period is scheduled for November 12 and 13.
The offering comprises 99 million shares for institutional and high-net-worth investors through book-building, representing 75 percent of the total issue. The shares will have a floor price of Rs. 15 each, including a premium of Rs. 5 per share. The price band allows an increase of up to 50 percent, taking the maximum price to Rs. 22.50 per share.
IPO Proceeds to Strengthen Capital Base
At the floor price, the bank expects to raise gross proceeds of approximately Rs. 1.98 billion. The funds will primarily be used to expand its loan portfolio and strengthen its capital base.
The proposed equity injection is expected to improve the bank’s capital adequacy ratio (CAR), support balance-sheet growth, and help it meet the minimum regulatory capital requirements set by the State Bank of Pakistan (SBP) for microfinance banks.
According to the bank’s projections, the IPO proceeds will help address its capital shortfall and bring its CAR closer to the regulatory threshold. Projected earnings over the following two years are also expected to strengthen its capital position and support regulatory compliance.
The general public portion of the offering will be fully underwritten by Arif Habib Limited, Topline Securities Limited, Growth Securities (Private) Limited, and Dawood Equities Limited.
Bank Projects Rs. 2.9 Billion Profit in 2026
ABHI Microfinance Bank expects to remain profitable in 2026, with management estimating a profit of approximately Rs. 1.5 billion in the second half of the calendar year. This would take projected full-year profit to around Rs. 3 billion.
The bank’s forecast puts its 2026 profit at Rs. 2.927 billion.
Following the addition of IPO proceeds and projected earnings, the bank expects its CAR to turn positive and reach approximately 4.3 percent by the end of 2026, before accounting for other capital adjustments.
Profitability is projected to improve further in 2027, adding to retained earnings. Combined with routine regulatory capital adjustments, this is expected to lift the CAR to 17.8 percent by the end of 2027, above the SBP-prescribed minimum of 15 percent for microfinance banks.
ABHI Bank’s Operations and Shareholding
ABHI Microfinance Bank operates through branch-based and branchless banking channels. Its technology-enabled digital platform and network of more than 114 branches across over 108 cities support its financial services throughout Pakistan.
Its portfolio includes secured lending products such as gold-backed loans, as well as digital lending solutions, including earned wage access, salary-backed lending, and advance salary financing. The bank also offers merchant financing and microenterprise lending for businesses in the agriculture and livestock sectors.
According to disclosures shared with investors through the PSX, ABHI (Private) Limited holds a 73.73% stake in ABHI Microfinance Bank, while TPL Corp Limited owns the remaining 26.27%.
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