ABHI Microfinance Bank IPO opens for retail subscription November 12–13

ABHI Microfinance Bank's initial public offering (IPO) attracted bids equivalent to 158% of the shares allocated for book building during the two-day process held November 5–6 on the Pakistan Stock Exchange (PSX), according to a company statement.

The offering will now move to the retail subscription phase scheduled for November 12–13, with the final issue price set at PKR 15.50 per share.

How is ABHI Microfinance Bank's IPO structured?

The IPO comprises 132 million ordinary shares, with 75%, or 99 million shares, allocated to eligible investors through book building. These include institutional investors, corporate investors and high-net-worth individuals. The remaining 25%, equivalent to 33 million shares, is reserved for the public subscription scheduled for November 12 and 13.

The shares were initially offered within a price band of PKR 15 to PKR 22.50 each. The final strike price was determined at PKR 15.50 per share following the book-building process, according to a supplement to the IPO prospectus published November 7.

At the final issue price, the offering is valued at approximately PKR 2.046 billion, comprising PKR 1.5345 billion from the book-building portion and PKR 511.5 million from the retail portion, subject to completion of the public subscription.

The bank's reported 158% subscription reflects bids received during book building. Separately, PSX bidding data showed demand covering approximately 106% of the allocated shares at the final strike price.

The proceeds are intended to strengthen the bank's regulatory capital base and support the expansion of its lending portfolio, according to the IPO prospectus.

What did the bank say about investor participation?

ABHI Microfinance Bank said the book-building process attracted participation from domestic and foreign funds and investors, describing international interest as an encouraging development for Pakistan's capital markets.

The bank also acknowledged the support of Finance Minister Muhammad Aurangzeb, Securities and Exchange Commission of Pakistan (SECP) Chairman Dr. Kabir Ahmed Sidhu and PSX Managing Director Farrukh Sabzwari in facilitating investor participation and supporting the IPO process.

How has ABHI expanded from fintech into banking?

The offering marks another step in ABHI Group's expansion from a financial technology business into regulated banking.

Founded in 2021, ABHI initially focused on earned wage access, allowing employees to access a portion of their earned salaries before payday. It subsequently expanded into payroll solutions, salary financing and lending to small and medium-sized enterprises (SMEs).

In January 2025, ABHI and TPL Corp completed the acquisition of FINCA Microfinance Bank, enabling ABHI to combine its technology-based financial services with an established licensed banking platform.

The bank said it has since focused on improving operational efficiency, financial performance and digital capabilities while expanding access to financial services.