Khaadi to List on PSX

Pakistan's fashion and retail company Khaadi is set to launch an initial public offering (IPO) next month, according to Bloomberg. The IPO aims to raise funds in the range of Rs. 6.2 billion to Rs. 8.3 billion through a mix of a pre-IPO placement and the public offering. The advisory firm Arif Habib Ltd. is guiding Khaadi through this transaction.

The IPO will see the issuance of 500 million shares, with half being part of a pre-IPO placement and the other half subject to the IPO. The pre-IPO segment will involve 250 million shares being sold at a price bracket of Rs. 12.40 to Rs. 15.20, which could accumulate funds between Rs. 3.1 billion and Rs. 3.8 billion. The IPO itself will issue another 250 million shares, bringing the total potential fundraising to up to Rs.

8.3 billion. Khaadi aims to utilize the proceeds from the IPO to fuel its growth, particularly through capital expenditure estimated at approximately Rs. 3.5 billion each year starting from 2027. Khaadi primarily operates within Pakistan but also has a footprint in the UAE, UK, and US. The company is also in the process of transforming its traditional stores into 'experience stores' aimed at providing customers with a more engaging brand and shopping atmosphere.

Besides, Khaadi boasts an extensive online presence with operations extending to over 200 cities worldwide.