ABHI Microfinance to List on PSX; Plans 132m Share Offer at Rs15 Floor Price.

The Pakistan Stock Exchange (PSX) has placed the draft prospectus of ABHI Microfinance Bank Limited on its official website to seek public comments ahead of its proposed initial public offering (IPO) on the Main Board.

Market participants, institutional investors, and the general public can submit written feedback and comments via email to comments.draftprospectus@psx.com.pk by the close of business on Monday, August 10, 2026.

IPO Size, Valuation, and Structure

The public offering comprises 132 million ordinary shares with a face value of Rs10 per share, representing 13.65 percent of the bank’s post-IPO paid-up capital:

• Book-Building Portion: 75 percent of the issue (99 million shares) will be allocated through the institutional book-building process.
• General Public Portion: The remaining 25 percent (33 million shares) is reserved for retail investors.
• Pricing: The floor price is fixed at Rs15 per share, with a maximum upper price band of 50 percent, setting the maximum ceiling price at Rs22.50 per share. At the floor price baseline, the offer seeks to raise a minimum of Rs1.98 billion.

Arif Habib Limited, Topline Securities Limited, and Growth Securities (Private) Limited are acting as joint lead managers to the issue. The retail portion of the offer is fully underwritten by the three lead managers alongside Dawood Equities Limited.

Sponsor Structure and Ownership Stake

ABHI (Private) Limited serves as the sole sponsor, holding 73.73 percent of the pre-IPO share capital, while TPL Corp Limited holds a substantial shareholder stake of 26.27 percent.

In June 2026, the two corporate entities acquired the remaining 3.97 percent minority stake previously held by Kashf Foundation, securing 100 percent joint ownership of the bank prior to the public issue. Following the completion of the IPO, ABHI’s sponsor stake will dilute to 63.66 percent and TPL Corp’s to 22.68 percent, with public shareholders holding the remaining 13.65 percent.

Capital Position and Use of IPO Proceeds

The bank intends to utilize the net IPO proceeds primarily to expand its gross loan portfolio and strengthen its regulatory capital base. Management projects that the equity injection will boost the bank’s Capital Adequacy Ratio (CAR) and support balance-sheet growth while meeting State Bank of Pakistan (SBP) minimum capital standards.

Gold-backed micro-financing currently constitutes the majority of the lender’s loan portfolio and is expected to remain its main growth engine. SBP has granted the bank a five-year regulatory relaxation, valid until November 2029, allowing gold-secured advances to exceed the standard 35 percent ceiling of total advances.

Historically, recurring losses eroded equity reserves and pushed the bank’s CAR below the 15 percent regulatory minimum. In response, SBP extended a temporary relaxation on minimum CAR compliance through October 2027.

Operational Turnaround and Financial Performance

Following its acquisition in January 2025 by ABHI Private and TPL Corp (formerly operating as FINCA Microfinance Bank), new management restructured operations to prioritize profitability and digital integration.

The entity achieved a financial turnaround in calendar year 2025, posting a net profit after tax of Rs1.019 billion. Growth continued in the first half of 2026, with net profit reaching Rs1.501 billion for the six-month period ended June 30, 2026.

Total equity recovered from a deficit of Rs397 million at year-end 2025 to a positive Rs3.109 billion by June 2026, while the CAR improved from negative 20.28 percent to negative 6.26 percent over the same timeline. Financial projections indicate continued expansion in net interest income and net earnings through 2027, driven by digital lending initiatives and gold collateralized advances.

Public and institutional review remains open through August 10 before final regulatory approvals and book-building dates are announced by the exchange.