Khaadi plans to raise up to Rs8.3bn through pre-IPO, IPO

According to Mettis Global, Khaadi Pakistan Limited is looking to raise as much as Rs8.3 billion through a pre-IPO placement and a public offering, with Arif Habib Limited leading the transaction. The pre-IPO tranche has already sold 250 million shares to blue-chip investors at prices between Rs12.40 and Rs15.20, bringing in Rs3.1 billion to Rs3.8 billion. A further 250 million shares are planned for the IPO, priced between Rs12.40 and Rs18, which could generate Rs3.1 billion to Rs4.5 billion.

The IPO money is mainly earmarked for capital spending on the retailer's Experience Store format, which aims to improve the shopping experience and widen the product range. Khaadi runs 31 stores in Pakistan, and 18 had been converted by the first half of 2026, while the other 13 were in progress. Annual capex of about Rs3.5 billion is planned from 2027, and the company is targeting profit after tax of over Rs3.1 billion in CY26 and Rs4.8 billion in CY27.

Profit after tax reached Rs1.6 billion in 1H26, while the gross margin rose to 37% and operating profit stood at Rs2.6 billion. The company put the post-money P/E at about 10x on its CY26 earnings estimate, falling to 6.5x for CY27 on a post-IPO basis. Bookbuilding is expected to take place in November 2026, and Khaadi would be the first pure-play fashion retailer listed on the PSX.