Khaadi Pakistan Limited, one of the country’s leading fashion retailers, is planning to raise up to Rs8.3 billion through a pre-IPO placement and initial public offering (IPO) as it moves to expand and upgrade its retail network.
The company, a subsidiary of Weaves Corporation Limited, has already placed 250 million shares with blue-chip investors at Rs12.40 to Rs15.20 per share. The placement could raise between Rs3.1 billion and Rs3.8 billion.
Another 250 million shares will be offered to investors through the IPO at a price range of Rs12.40 to Rs18 per share. This could generate between Rs3.1 billion and Rs4.5 billion, taking the total amount raised through both offerings to as much as Rs8.3 billion.
Arif Habib Limited is acting as the lead manager and book runner for the transaction.
Khaadi plans to use the IPO proceeds mainly to fund its shift towards larger “Experience Stores”, designed to give customers a wider product range and an improved shopping experience.
The retailer currently has 31 stores across Pakistan. Eighteen had been converted into the new format by the first half of 2026, while work on the remaining 13 was under way.
The company plans annual capital expenditure of around Rs3.5 billion from 2027, funded through IPO proceeds and internally generated cash.
Khaadi is also changing its retail strategy from rapid expansion to a “go-deep” approach, focusing on fewer but larger and more productive outlets. It is increasing product variety and refreshing collections regularly, with new products launched weekly and twice a week during festive periods.
The company posted a profit after tax of Rs1.6 billion in the first half of 2026, compared with Rs1.7 billion in 2025. It expects profit to exceed Rs3.1 billion in 2026 and reach more than Rs4.8 billion in 2027.
Gross profit rose to Rs6.3 billion in the first half of 2026, taking the gross margin to 37 percent from 36 percent in 2025. Operating profit stood at Rs2.6 billion, with a 15 percent operating margin.
Founded by Shamoon Sultan in 1998 from a 400-square-foot store in Karachi, Khaadi has grown into a lifestyle retailer offering clothing, fabrics, footwear, handbags, accessories, fragrances, home products and cafes.
The company now operates in 14 Pakistani cities, while its online platform serves customers in more than 200 cities. It also has outlets in the UAE, UK and US through subsidiaries.
Khaadi is expected to become Pakistan’s first pure-play fashion retail company to list on the Pakistan Stock Exchange. The IPO bookbuilding is expected in November 2026.
The International Finance Corporation invested $25 million in Khaadi in 2022 for a minority stake, marking its first global investment in the fashion retail sector.
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