ABHI Microfinance Bank Limited is set to launch its initial public offering (IPO) on the Pakistan Stock Exchange (PSX), aiming to raise between Rs. 2 to 3 Billion billion through the issuance of 132 million ordinary shares. The offering represents 13.65% of the bank’s post-IPO paid-up capital and marks a significant step in its plans to strengthen its financial position and expand lending operations.
According to the prospectus published on October 30, 2026, the bank has set a floor price of Rs 15 per share, with a maximum price of Rs 22.50. The offering will be conducted through a combination of book building and retail subscription. The book-building process, covering 99 million shares or 75% of the total issue, is scheduled for November 5 and 6, while the remaining 33 million shares, representing 25%, will be offered to the general public on November 12 and 13.
Arif Habib Limited, Topline Securities Limited, Growth Securities (Private) Limited and Dawood Equities Limited will fully underwrite the retail portion of the offering. The final share price will be determined through the book-building process.
The bank plans to use the proceeds primarily to expand its loan portfolio, strengthen its capital base and improve its Capital Adequacy Ratio (CAR). The additional capital is expected to support balance-sheet growth and help the institution meet the regulatory capital requirements set by the State Bank of Pakistan (SBP).
ABHI Microfinance Bank has reported a significant improvement in its financial performance following its acquisition by ABHI (Private) Limited and TPL Corp Limited in January 2025. The bank, previously known as FINCA Microfinance Bank Limited, recorded a loss of Rs 1.754 billion in 2024 before returning to profitability with a net profit of Rs 1.019 billion in 2025.
The prospectus reports a net profit of Rs 1.501 billion for the first half of 2026. The bank has projected a full-year profit of Rs 2.927 billion for 2026, with earnings expected to increase further to Rs 4.126 billion in 2027. These projections are based on anticipated growth in lending activities, improved operational efficiency and higher income generation.
Despite the improvement, the bank continues to face capital-related challenges. Its CAR stood at negative 6.26% at the end of June 2026, below the SBP’s minimum requirement of 15%. According to the prospectus, the ratio is projected to reach 7.31% by the end of 2026 and improve to 17.77% in 2027, supported by IPO proceeds, retained earnings and other capital adjustments.
The bank has also received regulatory relaxation regarding the capital adequacy requirement until October 2027. Separately, it has secured approval to exceed the standard 35% limit on gold-backed financing until November 2029, allowing it to continue expanding this lending segment.
ABHI operates through branch-based and branchless banking channels, with more than 114 branches across over 108 cities in Pakistan. Its services include gold-backed loans, earned wage access, salary-backed financing, advance salary facilities, merchant financing and lending to microenterprises in agriculture and livestock sectors.
The bank is majority-owned by ABHI (Private) Limited, which holds a 73.73% stake, while TPL Corp Limited owns the remaining 26.27%.
The IPO will give public investors an opportunity to acquire shares in the bank as it continues its financial turnaround and expansion plans. However, the prospectus highlights the bank’s historical losses and ongoing capital requirements as important considerations for potential investors, who have been advised to review the disclosed risks and conduct independent due diligence before making investment decisions.
