ABHI IPO price holds steady at Rs15/share on first day of book-building
- Share price is allowed to increase by a maximum 50% (or up by Rs7.5) to Rs22.50
Abhi Microfinance Bank's IPO book building began, aiming to raise at least Rs1.98 billion to strengthen its capital base and improve its negative capital adequacy ratio to meet regulatory requirements.
- Details of Abhi Microfinance Bank's IPO book building process.
- How the IPO proceeds will strengthen the bank's capital.
- Projections for the bank's capital adequacy ratio post-IPO.
ABHI Microfinance Bank Limited’s share price stuck to its opening price of Rs15 on the first of the two-day book-building at the Pakistan Stock Exchange (PSX) on Thursday, as it aims to mobilise a minimum of Rs1.98 billion through initial public offering (IPO) to strengthen and expand its business.
The share price is allowed to increase by a maximum 50% (or up by Rs7.5) to Rs22.50, from the floor price of Rs15, in the two days of book building culminating on Friday (Nov 6), according to PSX bidding screen and ABHI prospectus.
Investors placed bids for 79.07 million shares on the first day of book building against the company offering a total of 99 million shares to be sold to institutional investors, corporates and high-net-worth individuals over the two-day process, with the final strike price to be determined at the conclusion of the bidding.
Later on, the company is scheduled to offer another 33 million shares to general (retail) investors at the final strike price on November 12 and 13.
Accordingly, ABHI has planned to sell a total of 132 million shares to investors through the IPO. It can raise funds in the range of minimum Rs1.98 billion to Rs2.97 billion - depending on the final strike price to be determined between Rs15 and Rs22.50 per share during the ongoing two-day Dutch bidding.
The gross proceeds from the IPO will be used to strengthen the Bank’s regulatory capital base and continue growth in the advanced portfolio, according to the company prospectus.
The Bank’s CAR [capital adequacy ratio] stood at negative 6.26% as of June 30, 2026. Based on its financial model, the capital injection, together with retained profits, is projected to lift CAR to 7.31% by the end of CY26 and 17.77% by the end of CY27, “moving the Bank above the SBP-prescribed minimum CAR of 15% for microfinance banks during CY27,” the prospectus said.