Khaadi Pakistan Limited is preparing to launch an Initial Public Offering (IPO) on the Pakistan Stock Exchange (PSX) next month, targeting between Rs6.2 billion and Rs8.3 billion to finance an ambitious retail infrastructure overhaul. The planned fundraising will offer 500 million shares, making it a landmark transaction for Pakistan’s capital markets and the first pure-play fashion retail listing in the exchange’s history.
According to market reports, half of the issue (250 million shares) will be allocated to institutional and high-net-worth investors through a pre-IPO placement. The remaining 250 million shares will be offered through the public IPO at a price range of Rs12.40 to Rs18 per share, allowing the company to raise between Rs3.1 billion and Rs4.5 billion from the public tranche alone. Book-building for the IPO is scheduled for November 2026.
“Khaadi is set to raise up to Rs8.3 billion through a combined pre-IPO and public offering in November, marking the first time a pure-play fashion retailer lists on the Pakistan Stock Exchange.”
Strategic Shift: From ‘Go-Wide’ to ‘Go-Deep’
The proceeds from the IPO will primarily finance capital expenditure for Khaadi’s new “Experience Store” format. The company is actively shifting its retail strategy from a “go-wide” approach—which previously focused on rapid geographic expansion—to a “go-deep” model centered on operating fewer, larger, and highly productive retail hubs.
Khaadi currently operates 31 locations across Pakistan and aims to convert its entire domestic network into the Experience Store format. As of the first half of 2026 (1H26), 18 stores had already completed the conversion, with the remaining 13 undergoing remodeling. Management has outlined an annual capital expenditure of Rs3.5 billion from 2027 onwards to support this transition alongside ongoing e-commerce and product assortment enhancements.
Financial Performance and Projected Growth
The retailer’s financial trajectory has shown steady margin improvements ahead of the listing. Khaadi recorded a gross profit of Rs6.3 billion during 1H26, improving its gross margin to 37% (up from 36% in CY25 and 34% in CY24).
Looking ahead, Khaadi is aggressively projecting its bottom line. The company recorded a Profit After Tax (PAT) of Rs1.6 billion in 1H26 and is targeting a PAT of over Rs3.1 billion in CY26, representing a 90% year-on-year growth. For CY27, the company anticipates profits to reach Rs4.8 billion. Based on these estimates, the shares are being offered at a post-money price-to-earnings (P/E) multiple of approximately 10x for CY26, which is projected to drop to an attractive 6.5x by CY27.
| Khaadi IPO & Financial Snapshot | Details |
| Total Target Capital | Rs 6.2 Billion – Rs 8.3 Billion |
| Total Shares on Offer | 500 Million (250M Pre-IPO, 250M Public IPO) |
| Public IPO Price Range | Rs 12.40 – Rs 18.00 per share |
| Target Launch Date | November 2026 |
| 1H26 Profit After Tax (PAT) | Rs 1.6 Billion |
| CY27 Projected PAT | Rs 4.8 Billion |
| Gross Profit Margin (1H26) | 37% |
Evolution from Zamzama to the PSX
Founded by Shamoon Sultan in 1998 as a 400-square-foot menswear store in Karachi’s Zamzama district, Khaadi has evolved into a global lifestyle brand. Today, its portfolio spans ready-to-wear clothing, fabrics, accessories, fragrances, home goods, and cafes. Aside from its 14-city footprint in Pakistan and a nationwide e-commerce presence serving 200 cities, Khaadi’s subsidiary Weaves Corporation manages its international outlets in the UAE, the UK, and the US.
The upcoming IPO follows a major institutional endorsement in 2022 when the International Finance Corporation (IFC)—a member of the World Bank Group—invested $25 million for a minority equity stake. At the time, the IFC noted it was their first global investment in the fashion retail sector, laying the corporate governance groundwork that has paved the way for next month’s highly anticipated public listing.
“Transitioning from a ‘go-wide’ geographic strategy to a ‘go-deep’ approach, Khaadi is utilizing its IPO capital to convert its entire 31-store domestic network into massive, high-yield Experience Stores.”