Khaadi Pakistan Limited has officially placed its draft prospectus on the Pakistan Stock Exchange (PSX) website for public review, setting a book-building floor price of Rs12.40 per share. With a nominal face value of just Rs0.125 (12.5 paisa) per share, investors bidding at the floor will pay a premium equivalent to 99.2 times the face value. At the upper price band limit of Rs18.00, the multiple leaps to 144 times.
For every Rs100 invested at the floor price, only about one rupee will contribute to Khaadi’s core share capital. The remaining Rs99 represents the share premium—the valuation the market is being asked to accept for Khaadi’s brand equity, its 31-store national network, its online presence, and its historical profitability, which included Rs25.1 billion in revenue during CY25.
“At the floor price of Rs12.40, investors will pay 99.2 times Khaadi’s face value. At the Rs18.00 cap, that multiple rises to 144 times.”
The Pre-IPO Stock Split and Valuation Context
The 12.5-paisa face value is a recent structural adjustment. On June 24, 2026, Khaadi issued bonus shares that inflated its paid-up capital from Rs5 million to Rs250 million. Just two days later, shareholders approved a massive stock split, reducing the traditional Rs10 face value down to Rs0.125 and converting 25 million shares into 2 billion shares.
While the split does not alter the actual price-to-face-value multiple—had the Rs10 face value been retained, the equivalent floor price would simply be Rs992 per share—it highlights how much equity Khaadi has generated on a small capital base. As of June 30, 2026, the company’s net worth stood at Rs7.48 billion against Rs250 million in share capital, placing its book value at Rs3.74 per share (roughly 30 times face value) even before factoring in any IPO premium.
How Khaadi Compares to the Broader Market
Because Khaadi operates as a pure-play retailer without in-house manufacturing, the prospectus notes that there are no directly comparable listed companies on the PSX. However, the offering places Khaadi at a premium compared to broader market averages:
- Trailing P/E Ratio: At the Rs12.40 floor, the post-IPO Price-to-Earnings (P/E) multiple sits at 11.97x. At the Rs18.00 cap, it reaches approximately 17.4x. By contrast, the KSE-100 index currently averages a P/E of 7.6x.
- Price-to-Book (P/B): The post-IPO P/B ratio is 2.27x at the floor and approximately 2.85x at the cap, compared to the KSE-100 average of 1.5x.
- Consultant Valuation: Using a Discounted Cash Flow (DCF) model, the Consultant to the Issue has valued the shares at Rs28.16.
| Khaadi IPO Key Metrics | Details |
| Face Value | Rs 0.125 per share |
| Floor Price | Rs 12.40 (99.2x face value) |
| Upper Price Band Cap | Rs 18.00 (144x face value) |
| Total New Shares Issued | 500 Million (20% of post-IPO capital) |
| IPO Shares (Public) | 250 Million (175m book building, 75m retail) |
| Pre-IPO Placement | 250 Million shares to 15 investors (Rs12.40–15.20) |
| Implied Market Capitalization | Rs 31 Billion (at floor) – Rs 45 Billion (at cap) |
Utilization of Proceeds and Sponsor Shareholding
The total offering comprises 500 million entirely new shares, meaning the sponsor is not offloading existing equity. Weaves Corporation Limited—beneficially owned by founder Shamoon Sultan (80%) and the World Bank’s International Finance Corporation (20%)—will retain an 80% stake in the company post-listing.
At the floor price, the public IPO will raise Rs3.1 billion, while the pre-IPO placement secures an additional Rs3.1 to Rs3.8 billion. The Rs3.1 billion from the public offering will be utilized strictly for capital restructuring and expansion:
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Debt Repayment (57%): Rs1.76 billion will retire bridge loans from HBL, Faysal Bank, Askari Bank, and Al Baraka Bank, which were previously used to construct existing “Experience Stores.”
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Retail Expansion (43%): Rs1.34 billion is earmarked to complete a targeted eight-store rollout of new Experience Stores by the first half of CY27.
In a novel marketing move, Khaadi plans to actively encourage retail shoppers at selected store locations to subscribe to the retail portion of the IPO. The PSX is accepting written public comments on the draft prospectus until October 15, 2026, after which official bidding and subscription dates will be announced.