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Eighteen months ago, we acquired a broken bank. Since then, through our secured lending model and digital-first strategy, we have successfully turned the institution around in record time, restoring profitability and laying 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, delivering technology-enabled, responsible and inclusive financial services that meet the evolving needs of millions of Pakistanis.
Building a modern banking institution requires more than innovation—it requires trust. And in banking, trust is built on capital.
From the very beginning, our shareholders understood that if we were to create a sustainable and scalable digital banking institution, strong capitalization would be non-negotiable. A robust capital base enables responsible growth, strengthens resilience, enhances confidence among regulators and customers, and provides the capacity to continuously invest in technology, innovation and financial inclusion.
Our short- to medium-term strategy has therefore focused on strengthening the bank’s capital base through multiple sources. We began this journey with significant Tier 1 capital injections by our incoming shareholders. Today, following the bank’s remarkable 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 in growth capital through an Initial Public Offering (IPO).
The proposed IPO is not merely a capital raise. It is a strategic investment in the bank’s next phase of growth.
The proceeds will strengthen our balance sheet, expand our lending capacity, accelerate our digital banking ambitions and position ABHI Bank to capture the immense opportunities emerging across Pakistan’s evolving financial services landscape.
Our journey demonstrates that with the right strategy, disciplined execution and patient capital, transformation is possible. Few financial institutions have achieved sustainability in such a short period following an acquisition. Our decision to pursue an IPO reflects confidence in the institution we have built, the business model we have proven and the long-term value we believe ABHI Bank can create. It is equally a testament to the trust placed in us by our customers, partners, regulators and shareholders.
Our ambition extends beyond raising capital—we are committed to continuously building 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 profitable growth itself becomes a source of capital creation.
We firmly believe Pakistan is ready for a new generation of challenger digital banks capable of meeting the changing financial needs of individuals and businesses alike. As the country’s digital economy expands, banking institutions must evolve alongside it by delivering faster, more accessible and technology-driven financial services.
The proposed IPO forms a key pillar 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, complemented by a range of credit enhancement instruments, 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, optimize capital efficiency and support the prudent expansion of our unsecured lending business while maintaining disciplined risk management.
Equally important is our focus on long-term resilience. 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 financial strength.
The proceeds from the IPO will accelerate our next phase of growth by expanding our Banking-as-a-Service platform, strengthening our digital banking rails and scaling our secured lending franchise through our omnichannel network of 114 customer touchpoints. Every rupee of capital raised will be deployed with a singular objective: building a stronger, more resilient and more scalable digital bank.
We are confident investors will recognize the long-term value ABHI Bank is creating. More importantly, we hope this IPO demonstrates the important role Pakistan’s capital markets can play in financing innovation, strengthening financial institutions and supporting sustainable economic growth.
For us, this IPO is more than a capital raise.
It is the next chapter in building one of Pakistan’s most resilient, well-capitalized and digitally enabled financial institutions—and, in doing so, contributing to the future of Pakistan’s financial sector.
