ABHI Microfinance Bank sets November 5-6 bidding for Rs3bn IPO

ABHI Microfinance Bank will take bids on November 5 and 6 for an initial public offering of 132 million ordinary shares on the Pakistan Stock Exchange, seeking to raise between Rs2 billion and Rs3 billion at a floor price of Rs15 a share.

Retail subscription is scheduled for November 12 and 13, according to details the bank disclosed to the exchange. Profit reported that the bank has received approval for the listing.

The book-building portion is 99 million shares, 75 percent of the total issue, at the Rs15 floor, which includes a premium of Rs5 a share. The price band allows an increase of up to 50 percent, putting the upper limit at Rs22.50.

Arif Habib Limited, Topline Securities Limited, Growth Securities (Private) Limited and Dawood Equities Limited have fully underwritten the general public portion of the offering.

At the floor price the bank expects gross proceeds of Rs1.98 billion. The money will mainly go to expanding its loan portfolio and strengthening its capital base. The equity injection is meant to lift its capital adequacy ratio towards the minimum the State Bank of Pakistan requires of microfinance banks.

ABHI projects its CAR turning positive and reaching about 4.3 percent by the end of 2026, once the IPO proceeds and expected earnings are counted and before other capital adjustments. It expects the ratio to reach 17.8 percent by the end of 2027, above the 15 percent minimum the SBP prescribes for the sector.

The bank estimates a profit of roughly Rs1.5 billion in the second half of calendar 2026, taking the full-year figure to about Rs3 billion. Its forecast puts 2026 profit at Rs2.927 billion. Profitability in 2027 is projected to add to retained earnings.

ABHI operates branch-based and branchless banking through more than 114 branches in over 108 cities.