Khaadi Pakistan Ltd. plans to launch an initial public offering in November, Bloomberg reported, as the fashion retailer seeks expansion funding.
The company aims to raise between Rs6.2 billion and Rs8.3 billion through a pre-IPO placement and the public offering. Arif Habib Ltd. is advising Khaadi on the transaction.
The fundraising plan covers 500 million shares, split equally between the two stages. The pre-IPO placement comprises 250 million shares priced between Rs12.40 and Rs15.20 each, potentially generating Rs3.1 billion to Rs3.8 billion.
Khaadi plans to offer the remaining 250 million shares through the IPO. According to Nukta, the public offering carries a proposed price range of Rs12.40 to Rs18 per share.
That portion could raise between Rs3.1 billion and Rs4.5 billion. Together, the transactions could bring total proceeds to Rs8.3 billion, depending on final pricing.
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The company intends to use the funds to support expansion and upgrade its retail network. It plans annual capital expenditure of around Rs3.5 billion from 2027 onward, supported by IPO proceeds and internally generated cash.
A central part of that investment involves converting conventional outlets into “experience stores”. These larger shopping spaces aim to create a more immersive environment while offering customers a broader selection of products.
Nukta reported that Khaadi plans to convert its entire network of 31 Pakistani outlets into the new format. Eighteen experience stores were operating by the first half of 2026, with another 13 outlets undergoing conversion.
The strategy places greater emphasis on larger stores and more frequent product launches. Khaadi introduces new products weekly, increasing launches to twice a week during festive periods, according to the report.
Pakistan remains the brand’s main market, although Khaadi also has a presence in the UAE, UK and US. Its online business reaches more than 200 cities, extending its customer base beyond locations with physical outlets.
The planned share sale follows earlier investment from the International Finance Corporation, a member of the World Bank Group. Khaadi is a subsidiary of Weaves Corporation, which counts IFC as a minority shareholder.
In May 2022, IFC announced a $25 million equivalent investment in Pakistani rupees for a minority stake in Khaadi Corporation. The investment aimed to expand the retailer’s store footprint and global online sales while supporting local suppliers, including smaller businesses.
Khaadi began operations in 1998 with a single store. Its international expansion later included its first US experience store at Tysons Corner in Virginia, announced in February 2024.
That outlet offered more than 5,000 square feet of selling space, featuring ready-to-wear clothing and accessories. The November IPO would provide fresh funding as Khaadi continues investing in the experience-store format across its domestic retail network.
