Eighteen months ago, we acquired a broken bank. Since then, through a secured lending model and a digital-first strategy, we have successfully transformed it into a profitable institution with a strong foundation for sustainable growth.
Our ambition is clear: to build Pakistan’s leading digital-first bank under the State Bank of Pakistan’s Branchless Banking (BB) license by leveraging technology, innovation and responsible banking to serve millions of Pakistanis.
Building a digital bank requires more than technology alone. It demands trust, resilience and strong capitalization. From the very beginning, our shareholders understood that if we were to build a scalable digital banking platform, a robust capital base would be non-negotiable. Capital not only enables growth but also strengthens confidence among regulators and customers while creating the capacity to continuously invest in digital infrastructure, innovation and financial inclusion.
Our strategy in the short to medium term has therefore focused on strengthening the bank’s capital base through multiple sources. We began with significant Tier 1 capital injections from our incoming shareholders. Today, following the bank’s successful turnaround, sustained profitability and growing market confidence, we believe the time is right to take the next step by listing ABHI Bank on the Pakistan Stock Exchange and raising approximately PKR 2–3 billion through an Initial Public Offering (IPO).
This IPO is much more than a fundraising exercise. It is a strategic investment in building the next generation of digital banking capabilities. The proceeds will strengthen our balance sheet, expand our lending capacity, accelerate our digital banking ambitions and enable us to capitalize on the significant opportunities emerging across Pakistan’s evolving financial services ecosystem.
Very few financial institutions have achieved sustainability so quickly following an acquisition. Our decision to pursue an IPO reflects our confidence in the institution we have built, the digital-first operating model we have validated and the long-term value we believe ABHI Bank is positioned to create. It also reflects the confidence placed in us by our customers, partners, regulators and shareholders, all of whom have contributed to this journey.
Our ambition extends beyond raising capital—we are focused on continuously creating it. Since the acquisition, we have complemented shareholder capital with approximately PKR 2.5 billion generated organically through profitability over just eighteen months. This demonstrates the strength, scalability and sustainability of our secured lending and digital-first operating model, where growth itself continues to generate capital.
Pakistan stands at an important point in its financial services evolution. We believe the country is ready for a new generation of challenger digital banks that can meet the changing expectations of consumers through technology-driven, accessible and responsible financial solutions.
The proposed IPO is a cornerstone of our long-term capitalization strategy. As we continue to scale, we also intend to diversify our capital structure through Additional Tier 1 (AT1) and Tier 2 instruments, supported by a range of credit enhancement mechanisms, including first-loss guarantees, pari passu portfolio guarantees, partial credit guarantees, risk participation arrangements and blended finance structures. These instruments will strengthen our balance sheet, improve capital efficiency and support the prudent expansion of our unsecured lending business while maintaining disciplined risk management.
Alongside growth, resilience remains a strategic priority. Through prudent provisioning under the IFRS 9 framework, we continue to build expected credit loss reserves that enhance our ability to absorb future economic shocks while reinforcing the bank’s long-term financial strength.
The capital raised through the IPO will accelerate investments across our Banking-as-a-Service platform, strengthen our digital banking rails and expand our secured lending franchise through our omnichannel network of 114 customer touchpoints. Every rupee will be invested with a single objective: building a stronger, more resilient and more scalable digital bank for Pakistan.
We are confident investors will recognize the long-term value ABHI Bank is creating. More importantly, we hope this IPO demonstrates how Pakistan’s capital markets can help accelerate innovation, strengthen the fintech ecosystem and support the future of digital banking.
For us, this IPO is more than a capital raise. It is the next milestone in building one of Pakistan’s most resilient, well-capitalized and digitally enabled financial institutions. The journey has only just begun.
