Khaadi, one of Pakistan’s major fashion retail brands, is planning to enter the Pakistan Stock Exchange (PSX) next month through an initial public offering (IPO) aimed at financing its expansion.

The company plans to raise between Rs6.2 billion and Rs8.3 billion through a combination of a pre-IPO placement and the public offering, according to information provided to Bloomberg.

Khaadi Pakistan Ltd. is a subsidiary of Weaves Corp., which has the International Finance Corporation (IFC), a member of the World Bank Group, as a minority shareholder.

The company operates across Pakistan and also has a presence in the UAE, UK and US. Arif Habib Ltd. is serving as the financial adviser for the transaction.

The fundraising involves 500 million shares, with 250 million shares allocated to a completed pre-IPO placement and another 250 million shares planned for the IPO.

The pre-IPO shares are priced between Rs12.40 and Rs15.20, giving the placement a potential value of Rs3.1 billion to Rs3.8 billion.

The public offering covers another 250 million shares, with an indicative price range of Rs12.40 to Rs18.00. The IPO could therefore raise between Rs3.1 billion and Rs4.5 billion.

Together, the two stages could generate as much as Rs8.3 billion.

Khaadi intends to use the funds to expand its retail network, with the company planning around Rs3.5 billion in annual capital expenditure from 2027 onward.

The retailer is also transforming its outlets into “experience stores” designed to provide customers with a broader brand and shopping experience.

Khaadi currently has 31 stores across 14 cities, including 18 experience stores. The remaining 13 outlets are expected to undergo conversion.

The company also sells online and has digital reach across more than 200 cities. Its largest outlet spans around 45,000 square feet and includes a café.

If completed as planned, the IPO would bring Khaadi into Pakistan’s listed equity market and allow investors to participate directly in the company’s future growth.