Fashion Retailer Khaadi Plans Up To Rs8.3bn IPO For Retail Network Expansion.
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✧ GENERATE BRIEFING
Leading Pakistani fashion and retail giant Khaadi Pakistan Limited has announced plans to launch an Initial Public Offering (IPO) targeting a capital raise between Rs6.2 billion and Rs8.3 billion. Advised by Arif Habib Limited as the lead manager and bookrunner, the transaction forms part of an aggressive push to modernize and scale the company's domestic and international footprint. The fundraising structure combines a pre-IPO placement with a public offering of a total of 500 million shares: Pre-IPO Placement: 250 million shares placed with blue-chip institutional investors at a price band of Rs12.40 to Rs15.20 per share, aiming to raise Rs3.1 billion to Rs3.8 billion.Public Offering: An additional 250 million shares offered at Rs12.40 to Rs18.00 per share, targeting between Rs3.1 billion and Rs4.5 billion.Proceeds from the listing will directly fund Khaadi’s ongoing "Experience Store" strategy, which involves converting conventional retail outlets into larger-format, immersive shopping hubs.
Pakistan’s premier fashion retailer, Khaadi Pakistan Limited, is preparing to launch an initial public offering (IPO) to raise between Rs6.2 billion and Rs8.3 billion, channeling capital into the large-scale upgrade and expansion of its retail network.
The transaction structure integrates a major pre-IPO placement with an upcoming public share offering. Khaadi has already allocated 250 million shares to blue-chip investors through a pre-IPO round priced between Rs12.40 and Rs15.20 per share, securing up to Rs3.8 billion. A further 250 million shares are slated for the public offering at a price range of Rs12.40 to Rs18.00 per share, bringing the combined capital raise ceiling to Rs8.3 billion.
Arif Habib Limited is steering the transaction as the financial adviser, lead manager, and bookrunner. Khaadi operates as a key subsidiary of Weaves Corporation Limited, which counts the International Finance Corporation (IFC)—a member of the World Bank Group—among its minority stakeholders.
Fueling the “Experience Store” Transformation
The primary objective of the IPO proceeds is to accelerate Khaadi’s transition toward its next-generation retail format:
- Format Conversion: The company operates 31 retail outlets across Pakistan and is systematically converting traditional branches into sprawling “Experience Stores” designed to offer enriched customer engagement and multi-category lifestyle merchandising.
- Capex Program: Having established 18 experience formats by the first half of 2026, the brand intends to commit approximately Rs3.5 billion annually in capital expenditure starting in 2027 to finalize nationwide conversions.
- Financial Momentum: Company projections indicate robust profitability, with profit after tax expected to surpass Rs3.1 billion in 2026 and scale past Rs4.8 billion in 2027, building upon a strong base that recorded Rs1.6 billion in 1HFY26.
Strengthening Capital Market Activity
Originating as a localized retail venture in Karachi in 1998, Khaadi has evolved into an international lifestyle brand with retail footprints spanning the United Kingdom, United States, and United Arab Emirates alongside an e-commerce network servicing over 200 cities.
The planned offering arrives amid a wave of robust listing activity on the Pakistan Stock Exchange (PSX), offering public investors direct exposure to Pakistan’s organized fashion and retail consumption sector. The formal execution of the IPO remains subject to the finalization of necessary regulatory approvals and statutory processes.
