KARACHI: ABHI Microfinance Bank Ltd., the digital lender majority-owned by fintech group Abhi, is preparing to launch an initial public offering on the Pakistan Stock Exchange this month, aiming to raise between Rs2 billion and Rs3 billion ($8 million to $11 million).
The bank plans to offer approximately 14% of its shares in the offering, according to Omair Ansari, sponsor and director of the lender. Proceeds from the IPO will strengthen the bank’s capital base, with its capital buffer expected to exceed the State Bank of Pakistan’s minimum regulatory requirement by next year, Ansari said.
ABHI Microfinance Bank, formerly known as FINCA Microfinance Bank, reported a profit after tax of Rs1.019 billion for 2025, its highest-ever annual profit and a sharp turnaround from a loss after tax of Rs1.754 billion in 2024. The bank had last been profitable in 2020.
The improvement came from stronger balance sheet growth, higher income generation, improved recoveries, tighter credit monitoring and better cost discipline, according to financial statements. Total assets increased to Rs77.07 billion from Rs40.35 billion a year earlier, driven by a 104% expansion in advances to Rs37.56 billion.
Abhi Pvt. owns about 75% of the lender, with TPL Corp. holding the remaining stake. The two companies acquired the institution about 18 months ago, shifting its focus toward digital operations and closing unprofitable branches.
Before the takeover, the microlender had been recording annual losses of up to $5 million for five consecutive years, Ansari said. Under new ownership, the bank generated more than $3.5 million in profit during its first year and is on track to earn approximately $10 million this year.
The bank sees opportunities in gold-backed lending, a segment Ansari said remains under-penetrated in Pakistan, citing India’s Muthoot Finance Ltd. as a comparable model. It is also working to secure a license for gold tokenization and exploring a crypto payments corridor linking customers in Pakistan and the Middle East.
Arif Habib Ltd., Topline Securities Ltd. and Growth Securities have been appointed as financial advisers for the offering. The company has held a roadshow in London targeting domestic and frontier and emerging market investors.
The IPO comes amid Pakistan’s busiest year for public offerings. In the first half of 2026, nine companies raised more than Rs20 billion through IPOs, with the Securities and Exchange Commission of Pakistan approving 10 listings during the period. The benchmark KSE-100 Index has surged significantly, reflecting improved macroeconomic stability under the International Monetary Fund program, positive market sentiment and renewed investor interest.
