Adal Fintech moves closer to PSX listing

November 2, 2026 (MLN): The Pakistan Stock Exchange (PSX) has officially placed the draft prospectus of Adal Fintech Limited ("AdalFi") on its website to invite public comments as the company moves forward with its initial public offering (IPO).

The milestone listing marks a major development for Pakistan's capital markets, introducing one of the country's first pure-play technology product companies to the Main Board of the PSX.

Key IPO Details and Structure

Adal Fintech Limited is seeking to list 50,160,003 ordinary shares (representing 10% of the total post-IPO paid-up capital) with a face value of PKR 1/- each. The offering is structured as follows:

·       Methodology: Book Building and General Public Offering.

·       Floor Price: PKR 8.75/- per share (inclusive of a PKR 7.75/- premium).

·       Price Band / Cap Price: Up to PKR 13.00/- per share (reflecting a maximum price band of 48.57%).

·       Book Building Portion: 75% of the issue size (37,620,002 shares) allocated to institutional investors and eligible participants.

·       Retail Portion: 25% of the issue size (12,540,001 shares) offered to the general public at the strike price, fully underwritten by Arif Habib Limited.

·       Lead Manager / Consultant: Arif Habib Limited.

All concerned stakeholders and members of the public have been invited to submit written comments on the draft prospectus to the PSX via email at comments.draftprospectus@psx.com.pk no later than the close of business on Friday, November 6, 2026.

Business Model and Operating Scale

Founded in June 2021 by Massachusetts Institute of Technology (MIT) alumni Salman Akhtar and Kewan Qadre Khawaja, drawing on the deep banking-software heritage of Techlogix, AdalFi provides an AI-driven digital lending infrastructure.

Rather than acting as a traditional balance-sheet lender, AdalFi operates as a software and technology partner to regulated financial institutions. Its platform integrates seamlessly into partner banks' core systems to automate cash-flow-based credit scoring, digital loan journeys, instant disbursements, and portfolio monitoring.

The Risk-Sharing Innovation: AdalFi charges partner banks no upfront licensing or implementation fees. Instead, it earns a performance-linked share of net markup income while taking a corresponding pari passu share of credit risk on non-performing loans.

Proven Track Record: As of mid-2026, AdalFi's platform has enabled cumulative gross lending volume (GLV) exceeding PKR 90 billion across more than 750,000 loans to over 130,000 unique borrowers. Portfolios powered by the platform have maintained a robust 90-day default rate of approximately 0.2%, significantly outperforming traditional bank baselines of ~3.5%.

Partner Bank Footprint: The platform is live across nine partner banks, including major institutions such as The Bank of Punjab, United Bank Limited (UBL), Allied Bank Limited (ABL), Askari Bank, JS Bank, MCB Bank, Bank AL Habib, Faysal Bank, and The Bank of Khyber.

Financial Highlights & Rapid Growth

AdalFi’s financial performance reflects high operating leverage characteristic of scaling software product firms:

Revenue Scaling: Total revenue grew exponentially from PKR 151.27 million in CY2023 to PKR 566.92 million in CY2025, reaching PKR 394.36 million in the first half of CY2026 alone.

Profitability Crossover: After recording net losses during its initial investment-heavy rollout phase (PKR 128.52 million loss in CY2023), the company achieved its first full year of profitability in CY2025 with a profit after tax (PAT) of PKR 107.71 million.

Strong Momentum: Profit after tax for 1H CY2026 stood at PKR 114.77 million, already surpassing the full-year result of CY2025.

Tax Status: As a registered Zone Enterprise with the Special Technology Zones Authority (STZA), AdalFi enjoys a corporate income tax exemption until June 30, 2031.

Use of IPO Proceeds

The net proceeds from the fresh issue, estimated at approximately PKR 438.9 million at the floor price, will be deployed over an 18-to-24-month period to support AdalFi's next phase of expansion:

·       Product & Model Development (22.8% / PKR 100 Mn): Building Pakistan-specific intellectual property owned directly by AdalFi Pakistan, focusing on Islamic digital lending products and SME-focused credit models.

·       Technology Infrastructure, Cloud & InfoSec (27.3% / PKR 120 Mn): Expanding AI/ML training infrastructure, cloud compute, data lake storage, and upgrading security certifications (ISO 27001 and SOC 2).

·       Marketing & Growth (27.3% / PKR 120 Mn): Deepening B2B engagement, thought leadership, digital campaigns, and enterprise sales capability.

·       Solution Delivery & Implementation Scale-up (18.2% / PKR 80 Mn): Hiring delivery leads and integration engineers to parallelize and accelerate partner bank onboarding pipelines.

·       General Corporate & Working Capital (4.3% / PKR 18.9 Mn): Supporting general corporate requirements and working capital tied to scaling trade receivables.

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