ABHI Microfinance Bank IPO: Powerful Plan to Raise Up to Rs3 Billion
The ABHI Microfinance Bank IPO is set to open soon on the Pakistan Stock Exchange (PSX). The bank plans to raise between Rs2 billion and Rs3 billion by offering 132 million ordinary shares at a floor price of Rs15 per share. Here are the key dates, pricing details and the reasons behind the offering.
ABHI Microfinance Bank IPO: Key Dates and Pricing
According to details disclosed to the PSX, the book-building process will take place on November 5 and 6. The retail subscription period follows on November 12 and 13.
The book-building portion covers 99 million ordinary shares, or 75 percent of the total issue. The floor price of Rs15 per share includes a premium of Rs5. The price band allows a maximum increase of 50 percent, which puts the upper limit at Rs22.50 per share.
The general public portion will be fully underwritten by four firms:
- Arif Habib Limited
- Topline Securities Limited
- Growth Securities (Private) Limited
- Dawood Equities Limited
Where the IPO Money Will Go
At the floor price, the bank expects gross proceeds of Rs1.98 billion. The funds will mainly be used to expand its 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 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 proceeds will help address its capital shortfall and bring its CAR closer to the regulatory threshold.
Profit Forecasts and the CAR Outlook
The bank says it has continued to report profits in 2026. Management estimates a profit of about Rs1.5 billion in the second half of the calendar year, taking the projected full-year profit to around Rs3 billion. The bank’s forecast puts its 2026 profit at Rs2.927 billion.
The bank expects its CAR to turn positive and reach roughly 4.3 percent by the end of 2026. That figure comes after adding the IPO proceeds and projected earnings, and before other capital adjustments.
Profitability is projected to improve further in 2027, adding to retained earnings. Combined with routine regulatory capital adjustments, this is expected to lift the CAR to 17.8 percent by the end of 2027. That would be above the SBP’s minimum of 15 percent for microfinance banks.
About ABHI Microfinance Bank
ABHI Microfinance Bank operates through both branch-based and branchless banking channels. Its technology-enabled digital platform is backed by more than 114 branches across over 108 cities.
Its product range includes:
- Secured lending, such as gold-backed loans
- Digital lending, including earned wage access, salary-backed lending and advance salary financing
- Merchant financing
- Microenterprise lending for businesses in agriculture and livestock
Ownership Structure
According to disclosures shared with investors through the PSX, ABHI (Private) Limited holds a 73.73 percent stake in the bank. TPL Corp Limited owns the remaining 26.27 percent.
What to Watch in the ABHI Microfinance Bank IPO
Two things matter most for investors. The first is how the book-building round prices the shares within the Rs15 to Rs22.50 range. The second is whether the bank delivers on its profit and CAR projections, which are forecasts and not guaranteed results.
Final Thoughts
The ABHI Microfinance Bank IPO is built around one goal: strengthening the bank’s capital so it can keep lending and meet SBP requirements. With book-building on November 5 and 6 and retail subscription on November 12 and 13, interested investors have a short window to review the offering documents. This article is for information only and is not investment advice.
