Adal Fintech Moves Closer to PSX Listing with Draft Prospectus Publication

The Pakistan Stock Exchange (PSX) has officially published the draft prospectus of Adal Fintech Limited ("AdalFi") on its website, inviting public comments as the company progresses toward its highly anticipated initial public offering (IPO).

This potential milestone represents a significant development for Pakistan's capital markets, marking the introduction of one of the nation's first pure-play technology product firms onto the PSX Main Board.

Key IPO Details and Structure

Adal Fintech Limited is offering 50,160,003 ordinary shares, representing 10% of its total post-IPO paid-up capital, at a face value of PKR 1 per share. The offering is structured as follows:

• Methodology: Book Building and General Public Offering.
• Floor Price: PKR 8.75/- per share (inclusive of a PKR 7.75/- premium).
• Price Band / Cap Price: Up to PKR 13.00/- per share (reflecting a maximum price band of 48.57%).
• Book Building Portion: 75% of the issue size (37,620,002 shares) allocated to institutional investors and eligible participants.
• Retail Portion: 25% of the issue size (12,540,001 shares) offered to the general public at the strike price, fully underwritten by Arif Habib Limited.
• Lead Manager / Consultant: Arif Habib Limited.

Stakeholders and members of the public are invited to submit written feedback on the draft prospectus via email to comments.draftprospectus@psx.com.pk by the close of business on Friday, November 6, 2026.

Business Model and Operating Scale

Founded in June 2021 by Massachusetts Institute of Technology (MIT) alumni Salman Akhtar and Kewan Qadre Khawaja, AdalFi leverages the deep banking-software heritage of Techlogix to deliver an advanced, AI-driven digital lending infrastructure.

Instead of operating as a traditional balance-sheet lender, AdalFi acts as a technology and software partner for regulated financial institutions. Its platform seamlessly integrates into partner banks' core systems, automating cash-flow-based credit scoring, digital loan journeys, instant disbursements, and portfolio monitoring.

Risk-Sharing Innovation: AdalFi's innovative model charges partner banks no upfront licensing or implementation fees. Instead, the company earns a performance-linked share of net markup income while sharing in the credit risk of non-performing loans on a pari passu basis.

Proven Track Record: As of mid-2026, AdalFi's platform has facilitated a cumulative gross lending volume (GLV) exceeding PKR 90 billion, spanning over 750,000 loans to more than 130,000 unique borrowers. Portfolios powered by the platform have maintained an impressive 90-day default rate of approximately 0.2%, significantly outperforming traditional banking baselines of around 3.5%.

Partner Bank Footprint: The platform is currently live across nine major partner banks, including prominent institutions such as The Bank of Punjab, United Bank Limited (UBL), Allied Bank Limited (ABL), Askari Bank, JS Bank, MCB Bank, Bank AL Habib, Faysal Bank, and The Bank of Khyber.

Financial Highlights & Rapid Growth

AdalFi's financial performance highlights the high operating leverage typical of scaling software product companies:

• Revenue Scaling: Total revenue has grown exponentially, rising from PKR 151.27 million in CY2023 to PKR 566.92 million in CY2025, and reaching PKR 394.36 million in just the first half of CY2026.
• Profitability Crossover: Following initial net losses during its investment-heavy rollout phase (PKR 128.52 million in CY2023), the company achieved its first full year of profitability in CY2025, posting a profit after tax (PAT) of PKR 107.71 million.
• Strong Momentum: Profit after tax for the first half of CY2026 reached PKR 114.77 million, already surpassing the full-year results of CY2025.
• Tax Status: As a registered Zone Enterprise with the Special Technology Zones Authority (STZA), AdalFi benefits from a corporate income tax exemption valid until June 30, 2031.

Use of IPO Proceeds

The net proceeds from the fresh offering, estimated at approximately PKR 438.9 million at the floor price, will be allocated over an 18-to-24-month period to support AdalFi's next phase of expansion:

• Product & Model Development (22.8% / PKR 100 Mn): Building Pakistan-specific intellectual property owned directly by AdalFi Pakistan, focusing on Islamic digital lending products and SME-focused credit models.
• Technology Infrastructure, Cloud & InfoSec (27.3% / PKR 120 Mn): Expanding AI/ML training infrastructure, cloud compute, data lake storage, and upgrading security certifications (ISO 27001 and SOC 2).
• Marketing & Growth (27.3% / PKR 120 Mn): Deepening B2B engagement, thought leadership, digital campaigns, and enterprise sales capability.
• Solution Delivery & Implementation Scale-up (18.2% / PKR 80 Mn): Hiring delivery leads and integration engineers to parallelize and accelerate partner bank onboarding pipelines.
• General Corporate & Working Capital (4.3% / PKR 18.9 Mn): Supporting general corporate requirements and working capital tied to scaling trade receivables.

Source link