ABHI Microfinance Bank plans to raise billions thru IPO
KARACHI: ABHI Microfinance Bank planned to raise between Rs 2 billion to Rs 3 billion through an initial public offering (IPO) of 132 million ordinary shares on the Pakistan Stock Exchange (PSX), with a floor price of Rs15 per share. According to details disclosed to the PSX, the book-building process will take place on November 5 and 6, while the retail subscription period is scheduled for…
ABHI Microfinance Bank is set to raise between Rs 2 billion and Rs 3 billion through an initial public offering (IPO) on the Pakistan Stock Exchange (PSX). The bank plans to issue 132 million ordinary shares, with a floor price of Rs15 per share. The book-building process will occur on November 5 and 6, followed by the retail subscription period on November 12 and 13.
This portion of the offering includes 99 million shares, accounting for 75% of the total issue, and a floor price of Rs15 per share, including a premium of Rs5 per share. The IPO price band allows for a maximum increase of 50%, raising the upper price limit to Rs22.50 per share. Topline Securities Limited, Growth Securities (Private) Limited, and Dawood Equities Limited will jointly underwrite the general public portion of the IPO.
At the floor price, the bank anticipates raising gross proceeds of Rs1.98 billion, which will primarily be utilized to expand its loan portfolio and bolster its capital base. The equity injection is expected to enhance the bank’s capital adequacy ratio (CAR), bolster its balance sheet, and facilitate compliance with the minimum regulatory capital requirements set by the State Bank of Pakistan (SBP) for microfinance banks.
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