Abhi Microfinance Bank plans PKR 2-3 billion IPO next month

Abhi Microfinance Bank, the digital lender majority-owned by Pakistani fintech company Abhi, plans to launch an initial public offering next month to raise between PKR 2 billion and PKR 3 billion to strengthen its capital base and finance future growth, a senior company official said.

The bank plans to offer about 14% of its shares in the IPO, according to Omair Ansari, sponsor and director of Abhi Microfinance Bank.

Ansari said the proceeds will be used to strengthen the lender’s capital position, with its capital buffer expected to exceed the State Bank of Pakistan’s minimum regulatory requirement by next year.

The planned listing comes during Pakistan’s busiest year for IPOs, with 10 companies raising a record PKR 19.8 billion so far in 2026, supported by a strong rally in the Pakistan Stock Exchange and increased participation from retail investors.

Abhi Microfinance Bank has appointed Arif Habib Limited, Topline Securities and Growth Securities as financial advisers for the offering. The bank has also held a roadshow in London to attract domestic investors as well as frontier and emerging-market funds.

Abhi Pvt. owns about 75% of the lender, while TPL Corp. holds the remaining stake. The two companies acquired the bank, formerly known as FINCA Microfinance Bank, in January 2025 after receiving final approval from the State Bank of Pakistan in November 2024 to acquire up to 94.8% of its shareholding.

Following the acquisition, the new owners digitized the bank’s operations and closed loss-making branches as part of a restructuring plan.

Ansari said the lender had recorded annual losses of up to USD 5 million for five consecutive years before the acquisition. Under the new ownership, however, the bank earned more than USD 3.5 million in profit in its first year and is on track to generate about USD 10 million in profit in 2026.

The bank also plans to expand into gold-backed lending, which it views as an underdeveloped segment in Pakistan. It is exploring a license for gold tokenization and assessing the feasibility of establishing a crypto payments corridor linking customers in Pakistan and the Middle East.

The proposed IPO marks another step in Abhi Microfinance Bank’s strategy to transform the former microfinance lender into a digitally focused financial institution while capitalizing on growing investor interest in Pakistan’s capital markets.