KHAADI TO LIST ON PSX: MASSIVE RS 8.3 BILLION IPO MANAGED BY ARIF HABIB LIMITED 🇵🇰
In a milestone for Pakistan’s capital markets, premier fashion retail brand Khaadi Pakistan Limited—a subsidiary of Weaves Corporation Limited, backed by the World Bank’s International Finance Corporation (IFC)—has announced plans to list on the Pakistan Stock Exchange (PSX).
The public offering aims to raise between PKR 6.2 Billion and PKR 8.3 Billion through a combined transaction of 500 million shares split between a pre-IPO placement and an open public book-building exercise. Managed and advised by Arif Habib Limited (AHL), the listing is scheduled for book-building in November 2026.
Upon completion, Khaadi will become the first pure-play fashion retailer listed on the PSX, establishing an entirely new consumer lifestyle asset class for domestic and international institutional investors.
Here is an analysis of the IPO structure, corporate valuation, retail expansion, and financial metrics.
Transaction Architecture: Pre-IPO & Public Book-Building
The equity offering is structured to bring institutional capital while broadening retail investor participation:
KHAADI PSX EQUITY OFFERING STRUCTURE
┌─────────────────────────────────────────────────────────────┐
│ TOTAL TRANSACTION VOLUME: 500 MILLION SHARES │
├─────────────────────────────────────────────────────────────┤
│ TRANCHE 1: PRE-IPO INSTITUTIONAL PLACEMENT │
│ • Volume: 250 Million Shares. │
│ • Indicative Price Band: PKR 12.40 to PKR 15.20 per share. │
│ • Capital Targeted: PKR 3.1 Billion to PKR 3.8 Billion. │
├─────────────────────────────────────────────────────────────┤
│ TRANCHE 2: PUBLIC OFFERING (IPO BOOK-BUILDING) │
│ • Volume: 250 Million Shares. │
│ • Indicative Price Band: PKR 12.40 to PKR 18.00 per share. │
│ • Capital Targeted: PKR 3.1 Billion to PKR 4.5 Billion. │
├─────────────────────────────────────────────────────────────┤
│ COMBINED CAPITAL RAISE: PKR 6.2 BILLION TO PKR 8.3 BILLION │
│ • Lead Manager & Book Runner: Arif Habib Limited (AHL). │
│ • Expected Book-Building Window: November 2026. │
└─────────────────────────────────────────────────────────────┘
Financial Performance & Valuation Multiples
Khaadi enters the public market following financial growth and margin expansion across its retail network:
| Financial Metric | Calendar Year 2024 | Calendar Year 2025 | First Half 2026 (1H26) | Target CY26 / CY27 |
| Gross Profit Margin | 34% | 36% | 37% (PKR 6.3 Billion) | Expanding on weekly inventory turns |
| Operating Margin | ~11% | 13% (PKR 3.2 Billion) | 15% (PKR 2.6 Billion) | Sustained double-digit EBIT |
| Profit After Tax (PAT) | PKR 1.4 Billion | PKR 1.7 Billion | PKR 1.6 Billion | >PKR 3.1B (CY26) / >PKR 4.8B (CY27) |
| Post-Money P/E Multiple | — | — | — | ~10x (CY26E) / ~6.5x (CY27E) |
Capital Allocation: The “Experience Store” Transformation
Proceeds from the IPO are earmarked to fund capital expenditure (CAPEX) of approximately PKR 3.5 Billion annually from 2027 onwards:
KHAADI RETAIL RESTRUCTURING BLUEPRINT
┌─────────────────────────────────────────────────────────────┐
│ 1. "GO-DEEP" STRATEGY (FEWER, LARGER, PRODUCTIVE STORES) │
│ • Shifting away from rapid geographic store proliferation. │
│ • Upgrading existing 31 stores into mega "Experience Stores"│
│ • 18 stores converted; 13 currently in active transition. │
├─────────────────────────────────────────────────────────────┤
│ 2. OMNI-CHANNEL & FAST-FASHION ROTATION │
│ • Introducing fresh product batches every week (bi-weekly │
│ during festive peak seasons). │
│ • E-commerce platform operating delivery across 200+ cities.│
├─────────────────────────────────────────────────────────────┤
│ 3. DIVERSIFIED LIFESTYLE PORTFOLIO │
│ • Ready-to-wear, fabrics, fragrances, home decor, and cafes.│
│ • Anchored by South Asia's largest store (45,000 sq ft). │
└─────────────────────────────────────────────────────────────┘
Institutional Pedigree & International Presence
- IFC / World Bank Partnership: In 2022, the International Finance Corporation (IFC) invested $25 million for a minority equity stake in Khaadi—marking the IFC’s first-ever global direct investment in the fashion retail industry.
- Global Retail Outlets: Beyond its footprint across 14 Pakistani metropolitan cities, parent group Weaves Corporation maintains dedicated retail stores across the United Arab Emirates, the United Kingdom, and the United States.
Commercial Advisory & Corporate Brand Positioning
The transition of enterprise retail brands onto public bourses underscores the growing value of structured brand equity, omni-channel customer acquisition, and commercial positioning. Real estate developers, retail enterprises, and commercial investors seeking corporate brand expansion and project marketing can partner with Makani Marketing.
📌 Investor Note: Preliminary details are based on draft regulatory filings, pre-IPO roadshows, and disclosures from the transaction advisor, Arif Habib Limited. Exact floor prices, institutional strike prices, and subscription timelines remain subject to formal prospectus clearance by the Securities and Exchange Commission of Pakistan (SECP) and the Pakistan Stock Exchange (PSX)
