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ABHI Microfinance Bank plans to raise between Rs2 billion and Rs3 billion through an initial public offering (IPO) on the Pakistan Stock Exchange (PSX).
The bank plans to offer 132 million ordinary shares at 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. The retail subscription period is scheduled for November 12 and 13.
The book-building portion includes 99 million shares. This represents 75 per cent of the total offering.
The floor price is Rs15 per share, including a premium of Rs5. Investors may bid within a price band that allows an increase of up to 50 per cent.
This puts the maximum share price at Rs22.50.
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At the floor price, the bank expects to raise gross proceeds of Rs1.98 billion. If the shares reach the upper price limit, the total proceeds could approach 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.
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). It will also support balance-sheet growth and help the bank meet the State Bank of Pakistan’s (SBP) minimum capital requirements for microfinance banks.
According to the bank’s projections, the IPO proceeds will help address its capital shortfall. They are also expected to move its CAR closer to the regulatory threshold.
The bank expects projected profits over the next two years to further strengthen its capital position. These earnings could also support compliance with regulatory requirements.
The bank expects to remain profitable during 2026. Management estimates a profit of approximately Rs1.5 billion in the second half of the year.
This would take projected full-year profit to around Rs3 billion. The bank’s financial forecast puts its 2026 profit at Rs2.927 billion.
ABHI Microfinance Bank expects its CAR to turn positive and reach approximately 4.3 per cent by the end of 2026. This projection includes the IPO proceeds and expected earnings. It excludes other capital adjustments.
The bank also expects profitability to improve further in 2027. Retained earnings and routine regulatory capital adjustments are projected to lift its CAR to 17.8 per cent by the end of that year.
This would exceed the SBP-prescribed minimum CAR of 15 per cent for microfinance banks.
ABHI Microfinance Bank operates through both traditional branches and branchless banking channels.
The bank uses a technology-enabled digital platform. It also has more than 114 branches across over 108 cities in Pakistan.
Its services include several secured and digital lending products. These include gold-backed loans, earned wage access and salary-backed financing.
The bank also offers advance salary financing and merchant loans. Its microenterprise lending covers businesses in agriculture and livestock.
According to disclosures shared with investors through the PSX, ABHI (Private) Limited owns 73.73 per cent of the microfinance bank.
TPL Corp Limited holds the remaining 26.27 per cent stake.
The proposed IPO will offer investors an opportunity to participate in the bank’s planned expansion. The proceeds are intended to support lending growth and improve its regulatory capital position.
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