Abhi Microfinance Bank, the digital lender majority-owned by Pakistani fintech company Abhi, is preparing to launch an initial public offering (IPO) later this month, aiming to raise between Rs2 billion and Rs3 billion as it seeks to strengthen its capital base and support future growth.
The bank plans to offer approximately 14% of its shares in the IPO, according to Omair Ansari, Sponsor and Director of Abhi Microfinance Bank.
The proceeds from the offering will be used to enhance the bank’s capital position, with its capital buffer expected to exceed the State Bank of Pakistan’s (SBP) minimum regulatory requirement by next year.
The planned listing comes during Pakistan’s busiest year for IPOs, with 10 companies raising a record Rs19.8 billion so far in 2026, driven by a strong stock market rally and increasing participation from retail investors.
Abhi Microfinance Bank has appointed Arif Habib Limited, Topline Securities, and Growth Securities as financial advisers for the transaction. As part of its fundraising efforts, the bank has also conducted a roadshow in London to attract both domestic investors and frontier and emerging market funds.
Abhi Pvt. currently owns around 75% of the bank, while TPL Corp. holds the remaining stake. The two companies acquired the lender, formerly known as FINCA Microfinance Bank, in January 2025 after receiving final approval from the SBP in November 2024 to acquire up to 94.8% of the bank’s shareholding.
Following the acquisition, Abhi focused on digitizing the bank’s operations while shutting down loss-making branches. The turnaround has been significant.
According to Ansari, the lender had been recording annual losses of up to $5 million for five consecutive years before the acquisition. Under its new ownership, however, the bank generated more than $3.5 million in profit during its first year and is now on track to earn approximately $10 million this year.
Looking ahead, Abhi Microfinance Bank plans to expand into gold-backed lending, a market it believes remains largely untapped in Pakistan. The bank is also exploring a license for gold tokenization and evaluating the development of a crypto payments corridor connecting customers in Pakistan and the Middle East.
The planned IPO marks another milestone in Abhi’s growth strategy as it continues transforming the former microfinance lender into a digitally focused financial institution while capitalizing on Pakistan’s increasingly active capital markets.
