KARACHI: ABHI Microfinance Bank plans to mobilise between Rs2 billion and Rs3 billion through an initial public offering (IPO) of 132 million ordinary shares at the Pakistan Stock Exchange (PSX), with the floor price fixed at Rs15 per share.
According to details disclosed to the bourse, the book-building process for the offer will be held on November 5 and 6, while the retail subscription has been scheduled for November 12 and 13.
The book-building segment consists of 99 million ordinary shares, accounting for 75 percent of the total issue. The floor price of Rs15 per share includes a premium of Rs5 per share. Under the allowed price band, the strike price may rise by up to 50 percent, taking the maximum price to Rs22.50 per share.
The portion reserved for the general public will be fully underwritten by Arif Habib Limited, Topline Securities Limited, Growth Securities (Private) Limited and Dawood Equities Limited.
At the floor price, the bank expects gross proceeds of Rs1.98 billion. The funds will mainly be used to expand the bank’s loan portfolio and strengthen its capital base. The equity injection is also expected to improve the bank’s capital adequacy ratio (CAR), support balance-sheet expansion and help it meet the minimum regulatory capital requirements set by the State Bank of Pakistan (SBP) for microfinance banks.
As per projections shared by the bank, the IPO proceeds are expected to help bridge its capital shortfall and bring its CAR closer to the required regulatory level. The bank’s projected earnings over the next two years are also expected to further reinforce its capital position and support compliance with regulatory requirements.
The bank has continued to report profits in 2026. Its management estimates profit of around Rs1.5 billion in the second half of calendar year 2026, taking projected full-year profit to about Rs3 billion. The bank’s forecast places its 2026 profit at Rs2.927 billion.
Following the addition of IPO proceeds and expected earnings, the bank expects its CAR to turn positive and reach approximately 4.3 percent 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 raise the CAR to 17.8 percent by the end of 2027, above the SBP-prescribed minimum of 15 percent for microfinance banks.
ABHI Microfinance Bank provides services through both branch-based and branchless banking channels. Backed by a technology-enabled digital platform and a network of more than 114 branches in over 108 cities, the bank offers financial services across Pakistan.
Its portfolio includes secured lending products such as gold-backed loans; digital lending solutions including 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 percent stake in ABHI Microfinance Bank, while TPL Corp Limited owns the remaining 26.27 percent.
