ABHI Microfinance Bank targets Rs3bn through PSX IPO

October 30, 2026 (MLN): ABHI Microfinance Bank plans to raise up to Rs3 billion through an initial public offering (IPO) of 132 million ordinary shares on the Pakistan Stock Exchange (PSX), with a floor price of Rs15 per share.

According to disclosures submitted to the PSX, the book-building process will be held on November 5 and 6, while the subscription period for the general public is scheduled for November 12 and 13.

The book-building portion comprises 99 million shares, representing 75% of the total offering, at a floor price of Rs15 per share, including a premium of Rs5. The price band allows an upward adjustment of up to 50%, taking the maximum price to Rs22.50 per share.

The general public portion of the IPO will be fully underwritten by Arif Habib Limited, Topline Securities Limited, Growth Securities (Private) Limited and Dawood Equities Limited.

At the floor price, the offering is expected to generate gross proceeds of Rs1.98bn, primarily to finance the expansion of the bank's 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 expansion and help meet the minimum regulatory capital requirements prescribed by the State Bank of Pakistan (SBP) for microfinance banks.

According to the bank's projections, IPO proceeds will help address its capital shortfall and bring its CAR closer to the regulatory threshold. Expected profitability over the next two years is also projected to strengthen its capital position and support regulatory compliance.

The bank estimates a profit of approximately Rs1.5 billion in the second half of calendar year 2026, taking its projected full-year earnings to around Rs3bn. Its financial forecast places the 2026 profit at Rs2.927bn.

Following the addition of IPO proceeds and projected earnings, the bank expects its CAR to turn positive and reach approximately 4.3% by the end of 2026, before accounting for other capital adjustments.

Profitability is projected to improve further in 2027, contributing to retained earnings. Along with routine regulatory capital adjustments, this is expected to lift the CAR to 17.8% by the end of 2027, exceeding the SBP-prescribed minimum requirement of 15% for microfinance banks.

ABHI Microfinance Bank operates through branch-based and branchless banking channels, supported by a technology-enabled digital platform and a network of more than 114 branches across over 108 cities in Pakistan.

Its product portfolio includes secured gold-backed loans, digital lending solutions such as earned wage access, salary-backed lending and advance salary financing, 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 the bank, while TPL Corp Limited owns the remaining 26.27%.

Press Release