KARACHI: ABHI Microfinance Bank Limited’s initial public offering (IPO) price remained at Rs15 per share on Thursday, the first day of book-building at the Pakistan Stock Exchange (PSX).
Investors submitted bids for 79.07 million shares. Meanwhile, the bank offered 99 million shares to institutional, corporate and high-net-worth investors through the two-day process.
Bidding concludes on Friday, when the company will determine the final strike price. Under the approved pricing band, bids can rise by up to 50% from the floor price, reaching Rs22.50 per share.
ABHI plans to offer 132 million ordinary shares. Depending on the final price, the IPO could generate between Rs1.98 billion and Rs2.97 billion in gross proceeds.
The bank intends to use the funds to strengthen its regulatory capital base and expand its lending portfolio. Its prospectus shows a capital adequacy ratio (CAR) of negative 6.26% as of June 30.
Read: PTCL Invests Rs15bn in U Microfinance Bank to Boost Digital Banking
Based on its financial model, ABHI projects that ratio will rise to 7.31% by the end of 2026. It expects further improvement to 17.77% by the end of 2027.
Read: Banks Closed July 1 Across Pakistan, SBP Says
The State Bank of Pakistan (SBP) requires microfinance banks to maintain a minimum CAR of 15%. Accordingly, ABHI expects to exceed that requirement during 2027, supported by the planned capital injection and retained profits.
Retail investors are scheduled to subscribe for the remaining 33 million shares on November 12 and 13 at the final strike price.
