ABHI Microfinance Bank Limited has stepped onto the floor of the Pakistan Stock Exchange, seeking to raise at least Rs1.98 billion to fuel its expansion. On the first day of bidding, investors showed steady interest, holding the share price at its base of Rs15 as the bank prepares to open its doors to the wider public.
According to the Business Recorder, the bank launched its two-day book-building process on Thursday, with the share price remaining at the floor price of Rs15 during the initial sessions. The bank aims to raise between Rs1.98 billion and Rs2.97 billion through this initial public offering (IPO), depending on the final strike price determined by the market.
Investors placed bids for 79.07 million shares on the first day against a total of 99 million shares offered to institutional investors, corporations, and high-net-worth individuals. The PSX bidding screen and the company’s prospectus indicate that the share price is permitted to increase by a maximum of 50%, potentially reaching Rs22.50 per share by the conclusion of the bidding process.
Background
The total IPO consists of 132 million shares. Following the institutional phase, the bank is scheduled to offer 33 million shares to general retail investors on November 12 and 13. The final price for these retail shares will be the strike price established during the current book-building phase. According to the company prospectus, the gross proceeds from this sale will be directed toward strengthening the bank’s regulatory capital base and supporting the continued growth of its advanced portfolio.
Why it matters
For the Pakistani financial landscape, this IPO signifies a move to bolster the liquidity and capital strength of the microfinance sector. By raising these funds, ABHI Microfinance Bank aims to meet regulatory requirements while expanding its capacity to offer financial services. For individual investors, the transition to the retail phase next week offers a chance to participate in the bank's growth at a price determined by institutional demand.
What's next
The book-building process is set to conclude on Friday, November 6, which will finalize the strike price for all investors. Following this, the general public will have the opportunity to subscribe to the remaining 33 million shares during the two-day retail offering on November 12 and 13.