ABHI raises Rs2.046bn through IPO at Rs15.50/share
- Proceeds from IPO will be used to strengthen bank’s regulatory capital base and continue growth in advanced portfolio, according to company prospectus
ABHI Microfinance Bank successfully raised Rs2.046 billion through its IPO at the PSX, with shares priced at Rs15.50. This capital injection aims to strengthen its regulatory capital and support growth.
- Details of the IPO's two-phase share sale.
- Oversubscription rate during the book building process.
- How the IPO proceeds will improve the bank's capital adequacy ratio.
ABHI Microfinance Bank Limited’s (ABHI) stocks were priced at Rs15.50 per share, helping the bank to raise a total of Rs2.046 billion through initial public offering (IPO) at the Pakistan Stock Exchange (PSX).
The microfinance bank’s share price increased by 3.33% to the final strike price of Rs15.5 at the completion of two-day Dutch bidding (book building) on Friday from the opening (floor) price of Rs15 per share, according to PSX bidding screen and ABHI prospectus.
In phase one of the IPO, the bank sold 99 million shares at the strike price of Rs15.50 per share to corporate, institutional, and high-net-worth individual investors at the book building, mobilising Rs1.534 billion.
It is scheduled to sell another 33 million shares to general (retail) investors at the determined price on November 12 and 13. This will raise another Rs511.5 million for the bank, mobilising a total of Rs2.046 billion through the IPO.
The bank received bids for 157.17 million shares at the book building against the offered volume of 99 million shares, oversubscribing by approximately 59%.
The share price was allowed to increase by a maximum 50% (or up by Rs7.5) to Rs22.50, from the floor price of Rs15.
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.