KARACHI: ABHI Microfinance Bank plans to raise between Rs2 billion and Rs3 billion through an initial public offering of 132 million ordinary shares on the Pakistan Stock Exchange, with a floor price of Rs15 per share.
According to details disclosed to the PSX, the book-building process will be held on November 5 and 6, while the retail subscription period has been scheduled for November 12 and 13.
The book-building portion comprises 99 million ordinary shares, representing 75 per cent of the total issue, at a floor price of Rs15 per share. The floor price includes a premium of Rs5 per share. The price band allows a maximum increase of 50 per cent, taking the upper price limit to Rs22.50 per share.
The general public portion of the offering 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 to raise gross proceeds of Rs1.98 billion. The proceeds will primarily be used to expand the bank’s loan portfolio and strengthen its capital base.
The proposed equity injection is expected to improve the bank’s capital adequacy ratio, support balance-sheet growth and help it meet the minimum regulatory capital requirements prescribed by the State Bank of Pakistan for microfinance banks.
According to the bank’s projections, the IPO proceeds will help address its capital shortfall and bring its CAR closer to the regulatory threshold. The bank’s projected profitability over the following two years is expected to further strengthen its capital position and support compliance with regulatory requirements.
The bank has continued to report profits in 2026, with the management estimating a profit of approximately Rs1.5 billion in the second half of calendar year 2026. This is expected to take 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 approximately 4.3 per cent by the end of 2026, following the addition of IPO proceeds and projected earnings, before accounting for other capital adjustments.
Profitability is projected to improve further in 2027, adding to retained earnings. Combined with other routine regulatory capital adjustments, this is expected to lift the CAR to 17.8 per cent by the end of 2027, above the SBP-prescribed minimum of 15 per cent for microfinance banks.
ABHI Microfinance Bank operates through both branch-based and branchless banking channels. Supported by a technology-enabled digital platform and a network of more than 114 branches across over 108 cities, the bank offers a range of financial services throughout 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 operating in the agriculture and livestock sectors.
According to disclosures shared with investors through the PSX, ABHI (Private) Limited holds a 73.73 per cent stake in ABHI Microfinance Bank, while TPL Corp Limited owns the remaining 26.27 per cent.
