Pakistan’s fashion giant Khaadi plans to launch a historic Initial Public Offering (IPO) next month, in November 2026. Consequently, the brand aims to raise up to PKR 8.3 billion. Furthermore, this move will officially make Khaadi the first pure-play fashion retail company to list on the Pakistan Stock Exchange (PSX).
Breaking Down the Khaadi IPO Numbers
Khaadi plans to issue 500 million shares to investors. Arif Habib Limited currently manages the transaction as the lead manager and book runner. First, the company placed 250 million shares with blue-chip investors during a pre-IPO phase. This placement secured a price range between PKR 12.40 and PKR 15.20 per share. As a result, Khaadi has already raised between PKR 3.1 billion and PKR 3.8 billion.
Next, the public offering will feature the remaining 250 million shares. The company set the IPO price range between PKR 12.40 and PKR 18.00 per share. Therefore, this public phase could raise another PKR 3.1 billion to PKR 4.5 billion. Combined, these two transactions will generate between PKR 6.2 billion and PKR 8.3 billion. Meanwhile, the official book-building process will take place next month.
The “Go-Deep” Strategy & Experience Stores
Khaadi will use these IPO proceeds to transform its retail footprint. The company recently shifted its core strategy. Previously, Khaadi focused on a “go-wide” approach for rapid geographic expansion. Now, it embraces a “go-deep” strategy. This new model prioritizes fewer, larger, and significantly more productive outlets.
Specifically, Khaadi wants to convert its entire network into immersive “Experience Stores”. Consequently, the company plans an annual capital expenditure of around PKR 3.5 billion starting in 2027. Currently, Khaadi operates 31 stores across 14 cities in Pakistan. As of the first half of 2026, the company successfully converted 18 stores. Simultaneously, the remaining 13 stores are undergoing conversion. This portfolio notably includes South Asia’s largest retail store, which spans 45,000 square feet.
Moreover, Khaadi maintains a massive e-commerce presence that reaches over 200 cities. Through separate subsidiaries under Weaves Corporation Limited, the brand also operates international outlets in the UAE, the UK, and the US. To keep customers engaged, the company releases new products in smaller batches every week. Furthermore, this frequency doubles during festive seasons.
Financial Growth & Market Momentum
Financially, Khaadi shows massive growth. The company recorded a profit after tax (PAT) of PKR 1.6 billion in the first half of 2026. Previously, it posted PKR 1.7 billion in CY25 and PKR 1.4 billion in CY24. Moving forward, Khaadi targets a PAT exceeding PKR 3.1 billion for CY26. This target represents a 90% year-over-year growth. Subsequently, the company projects a PAT of PKR 4.8 billion for CY27, showcasing another 50% jump.
Additionally, profit margins continue to rise. Khaadi’s gross profit margin hit 37% in 1H26. Similarly, the operating margin reached 15%. Based on these estimates, the company offers its shares at a post-money price-to-earnings (P/E) multiple of roughly 10x for CY26. This multiple drops to an estimated 6.5x for CY27.
Founded in 1998 by Shamoon Sultan, Khaadi started in a tiny 400-square-foot store in Karachi’s Zamzama area. Over the decades, it expanded from menswear into a massive lifestyle retailer, winning ‘Retail Brand of the Year’ at the May 2024 Hum Style Awards. In 2022, the International Finance Corporation (IFC) invested $25 million in the brand. This move marked the IFC’s first global investment in the fashion retail sector.
Finally, this IPO arrives at a perfect time. The PSX recently experienced strong momentum. In a June 2026 statement, the PSX reported 13 new listings that delivered an average return of 47%. Therefore, Khaadi enters a capital market showcasing robust investor confidence.
