ABHI Microfinance Bank Targets Rs. 3 Billion IPO Next Month

ABHI Microfinance Bank will seek up to Rs. 3 billion by issuing 132 million shares on the PSX, with book-building on Nov 5-6 and retail subscription on Nov 12-13.

NationPulse Desk

Oct 30, 2026 · 10:37 AM 2 min read

Key takeaways

ABHI Microfinance Bank will issue 132 million ordinary shares to raise up to Rs. 3 billion on the PSX.

Book-building is scheduled for November 5-6, with retail subscription on November 12-13.

At the Rs. 15 floor price, the bank expects gross proceeds of about Rs. 1.98 billion.

Projected 2026 profit is Rs. 2.927 billion, with CAR expected to reach 4.3% by year-end.

ABHI (Private) Limited holds 73.73% of the bank, TPL Corp Limited holds 26.27%.

ABHI Microfinance Bank intends to raise up to Rs. 3 billion by offering 132 million ordinary shares on the Pakistan Stock Exchange, setting a floor price of Rs. 15 per share.

Disclosures filed with the PSX indicate the book-building stage will occur on November 5 and 6, while the retail subscription window is slated for November 12 and 13.

The issue includes 99 million shares allocated to institutional and high-net-worth investors through book-building, representing 75 percent of the total. Each share carries a floor price of Rs. 15, which includes a Rs. 5 premium, and the price band permits a rise of up to 50 percent, capping the price at Rs. 22.50 per share.

IPO Proceeds to Strengthen Capital Base

At the floor price, the bank anticipates gross proceeds of about Rs. 1.98 billion. The capital raised will mainly fund loan-portfolio expansion and bolster the bank's capital base.

The equity infusion is projected to lift the bank's capital adequacy ratio, support balance-sheet growth, and help meet the State Bank of Pakistan's minimum capital requirements for microfinance banks.

Bank forecasts suggest the IPO proceeds will close its capital shortfall and bring the CAR nearer to the regulatory threshold, with earnings over the next two years further strengthening its capital position and compliance.

The public-share portion will be fully underwritten by Arif Habib Limited, Topline Securities Limited, Growth Securities (Private) Limited, and Dawood Equities Limited.

Bank Projects Rs. 2.9 Billion Profit in 2026

Management expects profitability to continue in 2026, estimating roughly Rs. 1.5 billion profit in the second half of the calendar year, which would lift full-year profit to about Rs. 3 billion.

The forecast places 2026 profit at Rs. 2.927 billion.

Including IPO proceeds and projected earnings, the bank foresees its CAR turning positive and reaching roughly 4.3 percent by the end of 2026, before other capital adjustments.

Profitability is projected to rise further in 2027, adding to retained earnings. Combined with routine regulatory adjustments, the CAR is expected to climb to 17.8 percent by the end of 2027, above the SBP-prescribed 15 percent minimum for microfinance banks.

ABHI Bank's Operations and Shareholding

The bank operates via branch-based and branchless channels, supported by a digital platform and more than 114 branches in over 108 cities across Pakistan.

Its portfolio features secured products such as gold-backed loans and digital lending solutions like earned-wage access, salary-backed lending, and advance salary financing, as well as merchant financing and micro-enterprise loans for agriculture and livestock businesses.

Disclosures to investors show ABHI (Private) Limited holds a 73.73% stake, while TPL Corp Limited owns the remaining 26.27%.