ABHI Microfinance Bank plans to raise between Rs2 billion and Rs3 billion through an initial public offering (IPO) of 132 million ordinary shares on the Pakistan Stock Exchange (PSX), marking a proposed expansion of its capital base through the public equity market. The shares will carry a floor price of Rs15 each, including a premium of Rs5 per share. According to disclosures submitted to the PSX, the offering is intended to support the bank’s lending operations, strengthen its financial position and help it meet regulatory capital requirements.
The IPO process will begin with book-building on November 5 and 6, 2026, followed by the retail subscription period on November 12 and 13. Of the total 132 million shares, 99 million shares, representing 75% of the issue, will be offered to institutional and high-net-worth investors through book-building. The remaining portion will be available to the general public. The price band allows the share price to increase by up to 50% from the floor price, taking the maximum offer price to Rs22.50 per share. At the minimum price of Rs15, the bank expects to generate gross proceeds of approximately Rs1.98 billion.
The proceeds will primarily be directed towards expanding the bank’s loan portfolio and strengthening its capital base. The proposed equity injection is expected to improve its capital adequacy ratio (CAR), provide support for balance-sheet growth and help address the capital shortfall identified in its financial projections. The bank expects the additional funds, together with projected earnings, to move its capital position closer to the regulatory threshold prescribed by the State Bank of Pakistan (SBP) for microfinance banks.
According to the projections disclosed to investors, ABHI Microfinance Bank expects to remain profitable during 2026, with management estimating earnings of approximately Rs1.5 billion in the second half of the year. This would bring its projected full-year profit to around Rs2.927 billion. The bank expects the combination of IPO proceeds and retained earnings to turn its CAR positive and raise it to approximately 4.3% by the end of 2026, before accounting for other capital adjustments. These figures represent management’s projections rather than reported final results.
The bank expects its capital position to improve further in 2027 as profitability contributes to retained earnings. After incorporating routine regulatory capital adjustments, its CAR is projected to reach 17.8% by the end of that year. This would place the ratio above the SBP-prescribed minimum of 15% for microfinance banks. The projected improvement highlights the importance of the proposed capital raising in supporting the institution’s regulatory position and future business expansion.
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. Underwriting arrangements provide support for the public offering process, while the book-building mechanism will determine the final price within the announced range for the institutional and high-net-worth investor portion.
ABHI Microfinance Bank operates through both branch-based and branchless banking channels. Its technology-enabled platform and network of more than 114 branches across over 108 cities provide access to its financial services in different parts of Pakistan. The bank’s lending portfolio includes secured products such as gold-backed loans, alongside digital financing solutions such as earned wage access, salary-backed lending and advance salary financing. It also offers merchant financing and microenterprise lending for businesses operating in sectors including agriculture and livestock.
The bank’s ownership structure comprises ABHI (Private) Limited, which holds a 73.73% stake, and TPL Corp Limited, which owns the remaining 26.27%. The proposed IPO would introduce a public share offering while providing the institution with additional equity to support its lending activities and capital requirements. Its planned expansion comes as digital and microfinance institutions continue to develop financing products for individuals, employees, merchants and smaller businesses across Pakistan.
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