ABHI raises Rs2.046bn through IPO at Rs15.50/share

ABHI Microfinance Bank Limited successfully launched its IPO at the Pakistan Stock Exchange (PSX), raising a total of Rs2.046 billion through the sale of 99 million shares at Rs15.50 per share. The bank's share price surged by 3.33% to the final strike price of Rs15.50 following a two-day Dutch bidding process, which exceeded the initial floor price of Rs15 per share.

ABHI sold the initial 99 million shares to corporate, institutional, and high-net-worth investors in phase one, generating Rs1.534 billion in proceeds. The remaining 33 million shares were set to be sold to general investors on November 12 and 13, adding another Rs511.5 million to the bank's total IPO proceeds. With an oversubscription rate of approximately 59%, the bank received bids for 157.17 million shares, surpassing the offered volume of 99 million shares by a significant margin.

The gross proceeds from the IPO will bolster the bank's regulatory capital base, projected to improve from a negative 6.26% capital adequacy ratio (CAR) as of June 30, 2026, to 7.31% by the end of CY26 and 17.77% by the end of CY27. This capital injection is expected to propel the bank above the State Bank of Pakistan's minimum CAR requirement of 15% for microfinance banks in CY27.