Khaadi IPO delayed to December amid SE Fruits fiasco

Khaadi Pakistan Ltd., a fashion retailer, has delayed its initial public offering (IPO) by a month due to heightened regulatory scrutiny following a similar fiasco with SE Fruits and Vegetables' IPO last month. The IPO was initially announced on October 1, 2026, with expectations to launch in November. However, Arif Habib Limited (AHL), the financial advisor, has now stated that the IPO will take place in December 2026.

The fabric manufacturer has not yet disclosed the dates for its Dutch auction-based book-building process, during which investors, including corporate, institutional, high-net-worth individuals, and retail investors, will determine the share price. Reports suggest the delay stems from intensified scrutiny by the PSX (Peshawar Stock Exchange) and the Securities and Exchange Commission of Pakistan (SECP) to prevent a repeat of SE Fruits and Vegetables' issues, which resulted in the return of investors' money due to identified irregularities.

The SECP initiated regulatory proceedings and an investigation into procedural irregularities and financial information, requesting export records and financial details from various banks and the company's auditors. SECP Head of Media, Muhammad Sajid Gondal, confirmed that Khaadi's IPO application is under review but emphasized that the announcement of book-building dates rests with the company once required approvals are obtained.

A PSX official revealed that the IPO is currently being processed, with the exchange receiving public comments on Khaadi's prospectus. Khaadi, a subsidiary of Weaves Corp, aims to raise between Rs6.2 billion and Rs8.3 billion through the IPO, primarily to expand its retail outlet network in Pakistan, as well as in the UAE, the UK, and the US.