Investors rushed to secure a stake as ABHI Microfinance Bank Limited closed its initial public offering with total funds raised reaching Rs2.046 billion, according to Business Recorder.
Key Details
According to Business Recorder citing the PSX bidding screen and company prospectus, the bank's stock price climbed 3.33 percent from its opening floor price of Rs15 to settle at a final strike price of Rs15.50 following a two-day book building phase. During the first phase, 99 million shares were allocated to corporate, institutional, and high-net-worth individual investors, successfully mobilising Rs1.534 billion. The book building process saw bids submitted for 157.17 million shares, resulting in an oversubscription of roughly 59 percent against the offered volume.
Background
Based on details from the company prospectus and Business Recorder, the initial public offering allowed for a maximum potential share price increase of 50 percent up to Rs22.50 from the initial floor price. The gross proceeds generated from the share offering are designated to fortify the bank's regulatory capital base and sustain advancement within its loan portfolio. Financial records indicated that the bank's capital adequacy ratio was at negative 6.26 percent as of June 30, 2026.
Why it matters
For the broader financial landscape in Pakistan, the strong institutional interest and oversubscription reflect ongoing market activity and capital mobilization within the microfinance sector.
What's next
As scheduled by the bank, the remaining 33 million shares will be offered to general retail investors at the determined strike price, aiming to secure an additional Rs511.5 million to complete the total capital-raising target of Rs2.046 billion.