Khaadi Plans PSX IPO to Raise Up to Rs8.3 Billion

Pakistan’s leading fashion retailer Khaadi is preparing to launch an initial public offering on the Pakistan Stock Exchange, with the company reportedly targeting between Rs6.2 billion and Rs8.3 billion through a combination of a pre-IPO placement and public share offering.

Khaadi Pakistan Ltd. is expected to move ahead with the IPO in November 2026, according to reports citing Bloomberg.

The proposed fundraising involves a total of 500 million shares, divided equally between a pre-IPO placement and the subsequent public offering.

If completed as planned, the transaction would represent a significant move by one of Pakistan’s best-known consumer fashion brands into the country’s public capital market.

How Much Does Khaadi Plan to Raise?

Khaadi is reportedly targeting total proceeds of between:

Rs6.2 billion and Rs8.3 billion

through the combined pre-IPO and IPO transactions.

The overall structure reportedly involves:

The pre-IPO placement is expected to involve 250 million shares priced between Rs12.40 and Rs15.20 per share.

At that price range, the pre-IPO portion alone could generate between approximately Rs3.1 billion and Rs3.8 billion.

Another 250 million shares are expected to be offered through the eventual IPO.

What Will Khaadi’s IPO Share Price Be?

The final public-offering price has not yet been confirmed.

The Rs12.40-to-Rs15.20 range reported so far specifically relates to the planned pre-IPO placement.

Investors should therefore avoid assuming that Rs12.40 or Rs15.20 will automatically become the final public IPO price.

The IPO price may ultimately depend on the structure approved by regulators and any applicable book-building process.

As of October 1, 2026, a final Khaadi prospectus containing the confirmed IPO price, book-building dates and public subscription timetable was not visible on the PSX public listing pages reviewed for this article.

When Is the Khaadi IPO Expected?

Current reports indicate that Khaadi intends to launch the IPO in November 2026.

However, investors should distinguish between a company’s planned transaction timeline and a formally approved public subscription schedule.

Under the Pakistan Stock Exchange listing process, a company normally appoints a consultant, submits listing documentation, undergoes due diligence and receives relevant approvals before conducting the public offering.

PSX explains that following listing-committee approval, the Securities and Exchange Commission of Pakistan approves the prospectus before the IPO proceeds through either book building or a fixed-price structure.

Until those formal documents are published for Khaadi, November should be treated as the reported target window rather than a guaranteed subscription date.

Arif Habib Is Advising Khaadi

Arif Habib Limited is reportedly serving as financial adviser for the proposed transaction.

The adviser would typically help the company structure the offering, prepare transaction documentation, coordinate with regulators and institutional investors and assist with pricing and capital-market execution.

The final IPO structure will become clearer once formal offering documents are made public.

Why Is Khaadi Raising Money?

Khaadi intends to use the proceeds to support its continued retail expansion.

Reports indicate that the company expects capital expenditure of approximately Rs3.5 billion annually from 2027 onward.

Expansion plans reportedly include increasing and improving the company’s retail footprint.

Khaadi has also been transforming some conventional outlets into larger “experience stores”, designed to offer customers a more immersive shopping environment rather than operating simply as traditional clothing outlets.

The company also operates a large digital retail operation alongside its physical store network.

What Are Khaadi Experience Stores?

Khaadi has increasingly experimented with larger-format retail destinations built around more than just clothing racks.

The idea behind an experience store is to create a stronger physical connection between customers and the brand through larger spaces, product displays and a more comprehensive retail environment.

Such stores can potentially offer:

• Clothing and fashion collections
• Accessories
• Home-related products
• Larger display areas
• Enhanced customer-service facilities
• More immersive brand experiences

The strategy reflects a wider retail trend in which established brands try to make physical stores more distinctive as e-commerce becomes increasingly important.

Khaadi Started With a Single Store in Karachi

Khaadi was founded by Shamoon Sultan in 1998.

The brand originally focused heavily on handwoven fabric, with the name “Khaadi” itself referring to hand-woven cloth.

It began with a single retail store in Karachi before expanding across Pakistan and internationally.

Khaadi’s official corporate history says it developed into a major fashion brand with stores across Pakistan as well as an international presence.

The business today sells a much broader product range that includes unstitched fabric, ready-to-wear clothing and other fashion and lifestyle products.

Khaadi Has an International Presence

Pakistan remains Khaadi’s primary market, but the brand also operates internationally.

Its official online presence currently identifies stores or operations across markets including:

• Pakistan
• United Kingdom
• United Arab Emirates
• United States

Khaadi also operates international e-commerce channels serving customers in additional markets.

This international footprint differentiates Khaadi from many smaller domestic fashion retailers.

IFC Previously Invested $25 Million in Khaadi

Khaadi has already attracted investment from a major international development institution.

In 2022, the International Finance Corporation, part of the World Bank Group, announced an investment equivalent to $25 million for a minority stake in Khaadi’s holding company.

IFC said the investment was intended to support expansion of Khaadi’s retail network, global online sales and international operations.

IFC’s project disclosure described the investment as convertible preference shares worth up to approximately Rs4 billion at the time.

The institution said Khaadi intended to expand and optimise retail space, add stores in additional Pakistani cities and increase its international presence.

The proposed IPO therefore represents another stage in Khaadi’s transition from a founder-led fashion business toward a larger institutionally financed retail company.

Khaadi Has Previously Restructured Its Business

IFC disclosures also provide useful context about how Khaadi’s business evolved.

Before IFC’s investment, Khaadi had reorganised its operations and moved away from owning its primary manufacturing facilities.

According to IFC, the company sold those facilities and increasingly concentrated on its core retail, design and brand operations, while independent suppliers produced garments for the company.

This effectively made Khaadi more focused on:

• Brand management
• Product design
• Retail stores
• E-commerce
• International expansion

That type of asset structure can be relevant to potential investors because it affects capital requirements, margins and how the business scales.

Why Would Khaadi List on the PSX?

An IPO allows a private company to raise capital by selling shares to investors through a public stock exchange.

For Khaadi, a listing could provide capital to accelerate retail expansion without relying exclusively on bank loans or private investors.

A public listing can also create additional benefits such as:

• Access to larger pools of capital
• Greater corporate visibility
• Potential future fundraising opportunities
• A market-based valuation for the company
• Liquidity for eligible shareholders
• Increased governance and financial-disclosure requirements

However, becoming a listed company also introduces stricter reporting and regulatory obligations.

Khaadi would be required to comply with PSX and SECP requirements applicable to listed companies.

Pakistan’s IPO Market Has Been Active in 2026

Khaadi’s plans come during a relatively active period for Pakistan’s capital markets.

According to the Securities and Exchange Commission of Pakistan, 10 IPOs were approved during the first half of 2026, with nine companies completing offerings that collectively raised more than Rs20 billion.

Several companies have subsequently moved through PSX’s listing process.

For example, Select Technologies and Tasdeeq Information Services completed listings during 2026, while SE Fruits and Vegetable Ltd. conducted its public subscription in late September.

Khaadi’s proposed offering would add a consumer-facing fashion and retail name to that pipeline.

Why a Khaadi Listing Would Be Unusual

Pakistan’s stock market includes many companies from industries such as:

• Banking
• Fertiliser
• Cement
• Oil and gas
• Power
• Textiles
• Pharmaceuticals
• Automobiles

A large consumer fashion retailer has a different business profile.

Its performance is more directly linked to consumer spending, fashion trends, store traffic, e-commerce growth, inventory management and brand strength.

For investors, that could provide exposure to Pakistan’s organised fashion-retail sector rather than simply textile manufacturing.

However, investors would need the company’s prospectus and audited financial information before properly assessing its revenue, profitability, debt, cash flow and valuation.

How Can Retail Investors Buy Khaadi Shares?

Retail investors cannot yet purchase Khaadi shares on the PSX because the company has not completed its public listing.

Once a formal IPO opens, eligible investors would normally be able to subscribe through the mechanism described in the approved prospectus.

The final prospectus should provide important details including:

• IPO dates
• Number of shares offered
• Floor or strike price
• Retail allocation
• Book-building structure
• Minimum subscription quantity
• Company financial statements
• Risk factors
• Use of proceeds
• Shareholding structure

Investors should rely on the final PSX and SECP-approved prospectus rather than social-media posts claiming that Khaadi shares are already available.

Is the Rs8.3 Billion Fundraising Confirmed?

The Rs6.2 billion to Rs8.3 billion figure is currently a reported fundraising target.

It should not yet be interpreted as guaranteed proceeds.

The final amount could depend on factors including:

• Final share pricing
• Investor demand
• Regulatory approvals
• Book-building results
• Final offering structure

Likewise, the final valuation of Khaadi cannot reliably be calculated solely from the reported number of shares being offered because the company’s complete post-IPO share count and final transaction terms will need to be confirmed in the prospectus.

What Investors Should Watch Next

The most important next development will be publication of Khaadi’s formal IPO documentation.

That should provide considerably more information than is currently available, particularly regarding the company’s financial performance.

Potential investors should watch for:

• PSX listing application or approval
• Draft prospectus
• SECP approval
• Book-building dates
• Public subscription dates
• IPO price or floor price
• Financial statements
• Profitability and margins
• Debt position
• Dividend policy
• Final use of IPO proceeds

Those figures will make it possible to evaluate the offering on financial fundamentals rather than brand recognition alone.

Bottom Line

Khaadi Pakistan is reportedly preparing to launch a Pakistan Stock Exchange IPO in November 2026, targeting between Rs6.2 billion and Rs8.3 billion through a pre-IPO placement and public offering.

The proposed transaction involves 500 million shares, with 250 million planned for a pre-IPO placement and another 250 million expected to be offered through the IPO.

The pre-IPO shares are reportedly being marketed at Rs12.40 to Rs15.20, potentially raising Rs3.1 billion to Rs3.8 billion.

Khaadi intends to use the capital to support expansion, including annual capital expenditure of around Rs3.5 billion from 2027 onward.

However, the final IPO price, book-building dates and retail subscription dates have not yet been formally published on the PSX pages reviewed as of October 1.

For prospective investors, the next crucial document will therefore be Khaadi’s formal prospectus, which should reveal the company’s financial performance, valuation, risks and final terms of the offering.