ABHI Microfinance Bank plans Rs3bn IPO on PSX: report

Pakistan’s fintech group ABHI is preparing to launch an Initial Public Offering (IPO) of its microlender, i.e. ABHI Microfinance Bank Limited, at the Pakistan Stock Exchange (PSX) this month, reported Bloomberg on Thursday.

As per the report, the bank aims to raise between Rs2-3 billion by offering about 14% in new shares, Omair Ansari, sponsor and director at the lender, told the media outlet.

Ansari, who co-founded Abhi Pvt., aims to emulate the rapid growth of Brazil’s Nubank and Kazakhstan’s Kaspi.kz.

ABHI Microfinance Bank Limited closed 2025 with a profit after tax of Rs1.019 billion, the highest-ever in the bank’s history, compared to a loss after tax of Rs1.754 billion in 2024, marking a sharp recovery in the bank’s financial performance leading to a Rs.2.773 billion profitability swing in just one year after many years of losses.

According to Bloomberg, ABHI Microfinance Bank will use IPO funds to strengthen its capital base.

Meanwhile, Arif Habib Ltd., Topline Securities Ltd. and Growth Securities have been appointed as financial advisors to the offer.

Ansari said that the bank sees opportunities in under-penetrated gold-backed lending, citing the example of Muthoot Finance Ltd in neighbouring India.

“It also plans to obtain a license to tokenise gold and build a crypto payments corridor for customers between Pakistan and the Middle East,” read the report.

The PSX has experienced a strong revival in its IPO market in the ongoing year, demonstrating significant momentum and robust post-listing performance. In the first half of 2026, nine companies successfully raised over Rs20 billion through public offerings.

The robust IPO momentum in 2026 is a continuation of a trend driven by improved macroeconomic stability under the International Monetary Fund (IMF) program, coupled with positive market sentiment, high liquidity, and political stability, which encourage equity investment.

The benchmark KSE-100 Index surged significantly, reflecting overall positive sentiment and renewed investor interest. PSX outperformed global trends, which saw a slowdown in IPO activity in 2024.

However, concerns exist regarding “token listings,” where owners’ reluctance to sell meaningful equity and share control can limit market depth and transparency.