ABHI Microfinance Bank to Raise Rs. 3 Billion Through IPO Next Month

ABHI Microfinance Bank intends to raise up to Rs. 3 billion through an initial public offering (IPO) of 132 million ordinary shares on the Pakistan Stock Exchange (PSX), with a floor cost of Rs.

Key points

• The general public portion of the offering will be fully underwritten by Arif Habib Limited, Topline Securities Limited, Expansion Securities (Private) Limited, and Dawood Equities Limited.
• ABHI Microfinance Bank expects to remain profitable in 2026, with management estimating a profit of approximately Rs.
• The offering comprises 99 million shares for institutional and high-net-worth investors through book-building, representing 75 percent of the total matter.
• The bank's forecast puts its 2026 profit at Rs.
• Profitability is projected to improve further in 2027, adding to retained earnings.

While the retail subscription period is scheduled for November 12 and 13, according to disclosures submitted to the PSX, the book-building process will take place on November 5 and 6.

Meanwhile, the offering comprises 99 million shares for institutional and high-net-worth investors through book-building, representing 75 percent of the total matter. The shares will have a floor cost of Rs. 15 each, including a premium of Rs. 5 per share. Notably, the cost band allows an rise of up to 50 percent, taking the maximum cost to Rs. 22.50 per share. How to Apply for Small Business Loans Through SBP Online. IPO Proceeds to Strengthen Capital Base.

At the floor cost, the bank expects to raise gross proceeds of approximately Rs. 1.98 billion. The funds will primarily be applied to expand its loan portfolio and strengthen its capital base.

For context, the proposed equity injection is projected to improve the bank's capital adequacy ratio (CAR), backing balance-sheet expansion, and assist 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 IPO proceeds will support address its capital shortfall and bring its CAR closer to the regulatory threshold. Projected earnings over the after two years are additionally projected to strengthen its capital position and backing regulatory compliance.

In practice, the general public portion of the offering will be fully underwritten by Arif Habib Limited, Topline Securities Limited, Expansion Securities (Private) Limited, and Dawood Equities Limited. Cheap Housing Loans Surge 245% And Disbursements 333%. Bank Projects Rs. 2.9 Billion Profit in 2026.

ABHI Microfinance Bank expects to remain profitable in 2026, with management estimating a profit of approximately Rs. 1.5 billion in the second half of the calendar year. This would take projected full-year profit to around Rs. 3 billion.

Meanwhile, the bank's forecast puts its 2026 profit at Rs. 2.927 billion.

After the addition of IPO proceeds and projected 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, adding to retained earnings. Combined with routine regulatory capital adjustments, this is projected to lift the CAR to 17.8 percent by the end of 2027, above the SBP-prescribed minimum of 15 percent for microfinance banks. New SBP Website for Business Loans Introduced. ABHI Bank's Operations and Shareholding.

ABHI Microfinance Bank operates through branch-based and branchless banking channels. Its technology-enabled digital platform and network of more than 114 branches throughout over 108 cities backing its financial services throughout Pakistan.

As well as digital lending solutions, including earned wage access, salary-backed lending, and advance salary financing, its portfolio includes secured lending products such as gold-backed loans. The bank additionally offers merchant financing and microenterprise lending for businesses in the agriculture and livestock sectors.

While TPL Corp Limited owns the remaining 26.27%, according to disclosures shared with investors through the PSX, ABHI (Private) Limited holds a 73.73% stake in ABHI Microfinance Bank. Stay Connected with ProPakistani.

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