ABHI Microfinance Bank Targets Growth and Capital Strengthening Through Rs2-3 Billion IPO
ABHI Microfinance Bank Announces IPO on PSX
KARACHI: ABHI Microfinance Bank plans to raise between Rs2 billion and Rs3 billion through an initial public offering (IPO) of 132 million ordinary shares on the Pakistan Stock Exchange (PSX), with a floor price of Rs15 per share.
According to details disclosed to the PSX, the book-building process will take place on November 5 and 6, while the retail subscription period is scheduled for November 12 and 13.
Book-Building Process and Share Offering Details
The book-building portion comprises 99 million ordinary shares, representing 75% of the total issue, at a floor price of Rs15 per share, including a premium of Rs5 per share. The price band allows a maximum increase of 50%, taking the upper price limit to Rs22.50 per share.
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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.
IPO Proceeds to Support Expansion and Capital Adequacy
At the floor price, the bank expects to raise gross proceeds of Rs1.98 billion, which will primarily be used to expand its loan portfolio and strengthen its capital base. The proposed equity injection is expected to improve the bank’s capital adequacy ratio (CAR), support balance-sheet growth and help it meet the minimum regulatory capital requirements prescribed by the State Bank of Pakistan (SBP) 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.
Bank Forecasts Strong Profit Growth Through 2027
The bank has continued to report profits in 2026 as the management estimates a profit of approximately Rs1.5 billion in the second half of calendar year 2026, 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 approximately 4.3% 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% by the end of 2027, above the SBP-prescribed minimum of 15% for microfinance banks.
Digital Banking Network Supports Nationwide Financial Services
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% stake in ABHI Microfinance Bank, while TPL Corp Limited owns the remaining 26.27%.
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