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), with a floor price of Rs15 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 will comprise 99 million shares for institutional and other eligible investors through book-building, representing 75 per cent of the total issue. The remaining 33 million shares will be offered to the general public.
IPO Price Band and Subscription Details
The bank has set a floor price of Rs15 per share, including a premium of Rs5. The price band allows investors to bid up to 50 per cent above the floor price, setting the upper limit at Rs22.50 per share.
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At the floor price, the bank expects to generate gross proceeds of approximately Rs1.98 billion. If the shares are priced at the upper limit, the total proceeds could reach Rs2.97 billion.
Arif Habib Limited, Topline Securities Limited, Growth Securities (Private) Limited and Dawood Equities Limited will fully underwrite the general public portion of the offering.
IPO Proceeds to Support Lending and Capital Requirements
ABHI Microfinance Bank plans to use most of the IPO proceeds 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 existing capital shortfall and move its CAR closer to the regulatory threshold.
The bank also expects future earnings to strengthen its capital position and support compliance with regulatory requirements.
Bank Projects Rs2.93 Billion Profit for 2026
ABHI Microfinance Bank has continued to report profits during 2026, with management estimating earnings of approximately Rs1.5 billion in the second half of the calendar year.
The bank’s full-year profit forecast stands at Rs2.927 billion.
Following the addition of IPO proceeds and projected earnings, the bank expects its capital adequacy ratio to turn positive and reach approximately 4.3 per cent by the end of 2026, before accounting for other capital adjustments.
Profitability is projected to improve further in 2027, adding to retained earnings. Along with routine regulatory capital adjustments, these earnings are expected to lift the CAR to 17.8 per cent by the end of 2027.
This would exceed the SBP-prescribed minimum capital adequacy ratio of 15 per cent for microfinance banks.
Digital and Branch Banking Network
ABHI Microfinance Bank operates through both conventional branch-based and branchless banking channels, supported by a technology-enabled digital platform.
The bank has a network of more than 114 branches across over 108 cities in Pakistan, offering financial services to individuals and businesses.
Its product portfolio includes secured lending options such as gold-backed loans, alongside digital financing solutions covering earned wage access, salary-backed lending and advance salary financing.
The bank also provides merchant financing and microenterprise loans to businesses operating in the agriculture and livestock sectors.
ABHI and TPL Corp Hold Ownership Stakes
According to disclosures shared with investors through the PSX, ABHI (Private) Limited owns a 73.73 per cent stake in ABHI Microfinance Bank, while TPL Corp Limited holds the remaining 26.27 per cent.
The proposed IPO marks a major step in the bank’s efforts to strengthen its financial position, expand lending capacity and meet regulatory capital requirements while broadening public participation in its ownership.
