Lahore-based digital lending platform AdalFi plans to launch an initial public offering (IPO) next month, seeking to raise up to Rs. 652 million ($2.35 million) to expand its Islamic and small-business lending services.

The proposed offering would make AdalFi the first fintech to list on the Pakistan Stock Exchange (PSX) and one of the few startups to enter the country’s public market. AdalFi said in a statement to Bloomberg that it intends to issue new shares as part of the IPO.

A record year for listings

The planned listing comes amid a record year for Pakistan’s IPO market. According to data compiled by Bloomberg, 13 offerings have raised a combined Rs. 23.1 billion so far, marking the busiest year ever for listings in the country.

The IPO pipeline has gathered pace in recent weeks. Earlier this month, ABHI Microfinance Bank announced plans to raise up to Rs. 3 billion through an offering of 132 million ordinary shares, with book-building scheduled for November 5 and 6 and retail subscription on November 12 and 13.

AdalFi’s digital lending model

Founded in 2021, AdalFi helps banks and other lenders assess the creditworthiness of customers and small businesses with limited or no traditional credit histories.

Under its business model, banks provide the funds and retain the loans on their balance sheets, while AdalFi earns a share of the income and assumes part of the lending risk. The platform has facilitated more than Rs. 110 billion in loans since its founding, according to the company.

AdalFi’s proposed IPO adds to signs of activity in Pakistan’s startup and capital markets, with the listing offering the fintech an opportunity to raise funds from public investors as it seeks to expand its lending services.