ABHI Microfinance Bank Limited has allocated the largest portion of its initial public offering (IPO) book-building shares to high-net-worth individuals (HNIs), who secured approximately 37.73 million shares, representing 38.11% of the 99 million shares offered to investors during the first phase. The allocation details were shared by Arif Habib Limited, the consultant to the issue, following the completion of the two-day book-building process held on November 5 and 6, 2026. The shares were priced at PKR 15.50 each, establishing the final strike price for the offering. According to the allocation results reported by Mettis Global, the book-building process attracted participation worth approximately PKR 2.427 billion against an issue size of PKR 1.485 billion, resulting in an oversubscription of around 1.6 times. A total of 83 investors participated in the bidding process, of whom 73 were successful in securing allocations. The distribution provides a clearer picture of the investor categories that participated in the bank’s share offering, with individual high-net-worth investors accounting for the largest allocation, followed by Trading Right Entitlement Certificate (TREC) holders and other institutional and corporate investors.
Following high-net-worth individuals, TREC holders received 30.95 million shares, accounting for approximately 31.27% of the book-building allocation. Other institutions and corporate investors were allocated around 26.14 million shares, representing 26.40% of the total. Mutual funds received approximately 3.77 million shares, equivalent to 3.80%, while employees’ provident and pension funds were allocated 251,250 shares, or 0.25%. Insurance companies received 165,000 shares, representing 0.17% of the allocation, while commercial banks did not receive any shares. Together, these categories account for the complete allocation of 99 million shares offered through book building. The results indicate that high-net-worth individuals formed the largest investor group in terms of allocated shares, although the figures represent distribution rather than the number of investors within each category. The participation of TREC holders and institutional investors also formed a substantial part of the offering, reflecting demand across different segments of the capital market. The final strike price of PKR 15.50 was determined through the Dutch auction-based book-building process and remained close to the initial floor price of PKR 15 per share.
The book-building results represent the completion of the first stage of ABHI Microfinance Bank’s overall IPO, which comprises 132 million ordinary shares, equivalent to approximately 13.65% of the bank’s post-offering share capital. Under the offering structure, 75% of the shares, or 99 million, were reserved for corporate, institutional and high-net-worth investors through book building, while the remaining 25%, equivalent to 33 million shares, have been allocated for the general public. At the final strike price of PKR 15.50, the complete offering is expected to generate approximately PKR 2.046 billion. The public subscription phase is scheduled for November 12 and 13, 2026, allowing eligible retail investors to participate at the determined offer price. This means the allocation figures announced on November 10 relate specifically to the book-building portion and do not represent the final distribution of all shares under the IPO. The upcoming retail phase will provide the remaining portion of the offering to individual investors, with the final outcome depending on public subscription. The IPO proceeds are intended to support the bank’s regulatory capital position and provide resources for the expansion of its lending portfolio, according to the offering disclosures.
The capital-raising exercise is particularly relevant to ABHI Microfinance Bank’s financial position and its plans to expand lending operations. The bank’s IPO prospectus identifies strengthening its regulatory capital base and supporting growth in its advances portfolio as key objectives for the proceeds. Its capital adequacy ratio (CAR) stood at negative 6.26% as of June 30, 2026, according to figures reported in the offering disclosures. The bank’s financial projections indicate that the capital injection, together with retained profits, is expected to improve the ratio to 7.31% by the end of 2026 and 17.77% by the end of 2027, potentially taking it above the State Bank of Pakistan’s prescribed minimum CAR of 15% for microfinance banks during 2027. These figures are projections rather than achieved results and remain subject to the bank’s financial performance and regulatory requirements. ABHI entered Pakistan’s microfinance banking sector through its acquisition of FINCA Microfinance Bank in 2025, expanding beyond its earlier earned wage access and salary financing services. The IPO provides a route to raise additional capital as the bank develops its lending operations and works towards improving its regulatory position. With book building completed and the retail subscription phase approaching, the offering is moving into its final public participation stage.
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