Khaadi’s IPO: The brand you know, the numbers you should know

Khaadi has posted its draft prospectus on the Pakistan Stock Exchange website for public comment, setting out plans to issue 500mn new shares. The floor price is Rs12.40 and the cap is Rs18.00 per share, and at the floor the offer would raise Rs6.2 billion and value the company at Rs31 billion after listing. Mettis Global, which reviewed the 293-page draft, notes the brand now runs 31 stores across 14 cities.

Mettis Global reports that first-half CY26 revenue rose 27% year on year, but domestic sales grew only 9.2%, with the balance from exports to group stores abroad. Gross margin was broadly flat at 36.6% against 36.5% a year earlier, while profit after tax for the half came to Rs1.6 billion. Annual sales have hovered within a band of Rs24.6 billion to Rs27 billion since FY23, yet yearly profit has climbed by roughly three-quarters over the same stretch.

Of the Rs6.2 billion raised at the floor, Rs3.1 billion comes from the IPO and is earmarked for repaying short-term bank lines and funding four new Experience Stores, while the other Rs3.1 billion from pre-IPO placements has no stated use. The draft shows about Rs8 billion flowing to the parent between CY26 and CY28, and Mettis Global has asked PSX for clearer disclosure. HBL is the largest pre-IPO investor, with about Rs1.55 billion committed at the floor.