KARACHI: Khaadi Pakistan Ltd., a fashion retailer, plans to launch an initial public offering next month to raise money for expanding its network of retail stores, Bloomberg reported Thursday.
The company aims to raise between 6.2 billion and 8.3 billion Pakistani rupees, according to the report.
Khaadi is a subsidiary of Weaves Corp. The International Finance Corporation, a member of the World Bank Group, is a minority shareholder in Weaves.
Pakistan is Khaadi's main market. The company also operates in the United Arab Emirates, the United Kingdom and the United States.
Arif Habib Ltd. is serving as financial adviser on the transaction, the report said.
The planned offering comes as Pakistan's capital market shows strong momentum, with recent listings on the Pakistan Stock Exchange posting solid gains.
"With 13 new listings and an average return of 47%, Pakistan's capital market is showcasing powerful growth and investor confidence," the exchange said in a statement released in June 2026.
The primary business of Khaadi is the design, marketing, distribution, and retail of textile products and related accessories under the Khaadi brand. The Issuer's operations are conducted in Pakistan through a nationwide network of stores and the Khaadi e-commerce platform.
The Khaadi brand is also present in the United Arab Emirates, the United Kingdom, and the United States; while supplies to those markets are provided through Khaadi Pakistan, the international operations are conducted through separate companies within the Weaves Group and do not form part of the Issuer.
The brand was founded in 1998 by Shamoon Sultan as a single handloom store in Zamzama, Karachi, and is built around a design philosophy rooted in Pakistani craftsmanship and culture.
Since inception, the Company has grown substantially, with revenue rising from PKR 2.2 Bn in CY12 to PKR 19.4 Bn in CY19 and PKR 25.1 Bn in CY25 — a compound annual growth rate of approximately 20.6%.
This trajectory continued despite a temporary setback during the COVID-19 pandemic, when non-essential retail was suspended. In 2021, the International Finance Corporation ("IFC"), a member of the World Bank Group, agreed to invest up to USD 25 million in the Holding Company for a minority stake, with capital deployed in the Company from October 2022 onward.
