KARACHI: ABHI Microfinance Bank, operated by Pakistani fintech ABHI, plans to raise Rs2 billion [$7.2 million] to Rs3 billion [$10.8 million] in its initial public offering (IPO) next month, the bank said on Friday.

Founded in 2021, ABHI has been serving customers in Pakistan, UAE, Saudi Arabia and Bangladesh through its credit-bridging products such as the Earned Wage Access (EWA) facility. The fintech announced in February 2025 that it had launched the ABHI Microfinance Bank in collaboration with TPL Corp.

ABHI Microfinance Bank said in a statement that its book-building process will take place on Nov. 5 and 6, while the retail subscription period has been scheduled for Nov. 12 and 13.

“ABHI Microfinance Bank plans to raise between Rs 2 billion and Rs 3 billion through an initial public offering (IPO) of 132 million ordinary shares on the Pakistan Stock Exchange (PSX), with a floor price of Rs15 [$0.054] per share,” the fintech said in a statement.

It said the book-building portion comprises 99 million ordinary shares, representing 75 percent of the total issue at a floor price of Rs15 per share, including a premium of Rs5 [$0.018] per share. The price band allows a maximum increase of 50 percent, taking the upper price limit to Rs22.50 [$0.08] per share.

ABHI said the bank expects to raise gross proceeds of Rs1.98 billion [$7.15 million] at the floor price, saying it will primarily be used to expand the bank’s loan portfolio and strengthen its capital base.

“The proposed equity injection is expected to improve the bank’s capital adequacy ratio (CAR), support balance-sheet growth and help it meet the minimum regulatory capital requirements prescribed by the State Bank of Pakistan (SBP) for microfinance banks,” the statement added.

The bank said as per its projections, IPO proceeds will help address its capital shortfall and bring its CAR closer to the regulatory threshold. The bank’s projected profitability over the following two years is expected to further strengthen its capital position and support compliance with regulatory requirements, it added.

The bank operates through both branch-based and branchless banking channels, and is supported by a technology-enabled digital platform and a network of more than 114 branches over 108 cities.

ABHI Microfinance Bank’s portfolio includes lending products such as gold-backed loans; digital lending solutions, earned wage access, salary-backed lending and advance salary financing; merchant financing; and microenterprise lending for businesses operating in the agriculture and livestock sectors.