ABHI, the Pakistani fintech best known for letting employees draw part of their salary before payday, is taking its microfinance bank to the Pakistan Stock Exchange (PSX). Institutional investors have already placed their bids, and the general public can apply on 12 and 13 November 2026.
It is also one of the more interesting turnaround stories in Pakistani banking: a bank that lost money for years, and made a profit in its first full year under new owners. Here are the facts from the prospectus: the positives, the risks, and what to check before you decide.
From FINCA to ABHI: the background
- The bank started in 2008 as Kashf Microfinance Bank, became FINCA Microfinance Bank in 2013, and was bought by ABHI (Private) Limited and TPL Corp on 17 January 2025, then renamed ABHI Microfinance Bank.
- ABHI (Private) Limited, founded in 2021, is an SECP-licensed company offering Earned Wage Access (taking part of your earned salary before month-end), payroll services and financing. It owns 73.73% of the bank; TPL Corp owns 26.27%.
- The bank has 114+ branches in 108+ cities and offers gold-backed loans, Earned Wage Access, salary-backed and merchant financing, and loans to small farm and livestock businesses.
The IPO at a glance
- Shares offered: 132 million new shares (13.65% of the bank after the IPO)
- Price band: Rs15 floor, up to Rs22.50
- Split: 99 million (75%) through book-building for institutions and high-net-worth investors, 33 million (25%) for the general public
- Indicative strike price: Rs15.50 per share (PSX book-building data)
- Retail subscription: 12–13 November 2026, at the strike price
- Money raised: about Rs1.98 billion at the floor price, all going to the bank
The positives
1. A real turnaround, in numbers. The bank lost money every year from 2021 to 2024. In 2025, its first year under ABHI, it made a profit after tax of Rs1.02 billion, compared with a loss of Rs1.75 billion in 2024. The prospectus says profits continued in the first half of 2026.
2. Depositors trust it more. Deposits almost doubled, from Rs36 billion to Rs69 billion in 2025.
3. Loans are being repaid. Even as loans more than doubled, the non-performing loans ratio (loans not being repaid) fell to just 0.68%, according to the prospectus.
4. The balance sheet is being repaired fast. Equity went from a deficit of Rs397 million (December 2025) to positive Rs3.1 billion (June 2026), helped by profits and a Rs2 billion injection from ABHI itself. The capital adequacy ratio improved from −108% at the time of purchase to −6.3% by June 2026.
5. The owners are putting money in, not taking it out. All IPO money goes into the bank to grow lending and build capital. No existing shareholder is cashing out, and by law the sponsors must keep at least 25% of the bank for three years.
6. Institutions wanted in. Institutions bid for about 157 million shares against 99 million on offer, roughly 1.6 times the shares available.
7. Priced modestly, according to the company. At the floor price, the prospectus puts the bank at a P/E of 5.4 times earnings, against 7.5 times for the banking sector. With the indicative strike price at Rs15.50, retail investors would buy close to the floor.
8. A tech-led model. The bank is shifting to digital-first lending: Earned Wage Access, payroll-linked loans and merchant finance, with automated credit scoring. That model can grow without opening a branch for every new customer.
The risks (also from the prospectus)
A fair view needs both sides. The prospectus itself highlights these:
- Short profit record. One year of profit after four years of losses. The prospectus warns that the bank "does not have a consistent track record of profitability".
- Capital is still below the minimum. The capital adequacy ratio is still negative (−6.3%), against the State Bank's 15% minimum. The bank operates under an SBP relaxation until October 2027 and expects to comply by 2027.
- Heavy reliance on gold loans. About 88.7% of the average loan book is planned to be gold-backed loans in 2026, under an SBP exemption valid until November 2029. Gold loans are secured, but this is a concentration.
- Not cheap on book value. At the floor price the P/B is 2.23 times, about 19% above the banking sector's 1.88 times. The prospectus explains this by the bank's small equity base after past losses.
- Demand was price-sensitive. The indicative strike price of Rs15.50 is far below the Rs22.50 top of the band. Institutions wanted the shares, but at a modest price.
- Forecasts are forecasts. The prospectus projects profits of Rs2.9 billion (2026) and Rs4.1 billion (2027). These are the company's own estimates, not results.
How to apply
Retail investors apply online through PSX's e-IPO System (eipo.psx.com.pk) or CDC's Centralised e-IPO System, CES (cdceipo.com). You need a CDC account or sub-account (through a broker) or a CES registration. The window closes on 13 November.
FAQ
When can the public apply for the ABHI Microfinance Bank IPO?
On 12 and 13 November 2026.
What is the share price?
The price band is Rs15 to Rs22.50. Book-building data shows an indicative strike price of Rs15.50. Retail investors buy at the final strike price.
Is ABHI Microfinance Bank profitable?
Yes, since 2025. It made a profit after tax of Rs1.02 billion in 2025, after a loss of Rs1.75 billion in 2024, and the prospectus says profits continued in the first half of 2026.
What was ABHI Microfinance Bank called before?
FINCA Microfinance Bank Limited. ABHI and TPL Corp completed the purchase on 17 January 2025.
Where will the IPO money go?
Into the bank, to grow its loan book (mainly gold-backed loans) and strengthen its capital.
Need help?
Thinking about investing, or planning to raise capital for your own business? HLM Consultants helps with business valuation, financial statement analysis and financial modelling. Contact us to talk it through.
Sources: ABHI Microfinance Bank Limited final prospectus (PSX); ProPakistani (6 November 2026); Bloom Pakistan (10 November 2026); PSX. Valuation ratios are the company's own figures at the floor price; 2026–27 profits are company forecasts. Figures as of 11 November 2026. This post is general information, not investment advice. HLM Consultants has no connection with ABHI or this offer.