Khaadi IPO delayed to December amid SE Fruits fiasco

The planned initial public offering (IPO) of fashion retailer Khaadi Pakistan Ltd. has been delayed by a month amid increased regulatory scrutiny following the SE Fruits IPO setback last month.

The Khaadi IPO was reported on October 1, 2026, with plans for it to launch the following month.

However, Arif Habib Limited (AHL), the financial advisor for the transaction, told Business Recorder the IPO will be held “in December [2026]”.

The fabric maker is yet to announce the dates for its Dutch auction-based book-building process, through which it will determine the share price to sell part of its stake to corporate, institutional and high-net-worth individual investors, and to retail investors through the IPO.

Sources familiar with the matter said the delay follows intensified scrutiny by the two key regulatory authorities—the PSX and the Securities and Exchange Commission of Pakistan (SECP)—ahead of the IPO, in a bid to avoid a repeat of the SE Fruits and Vegetable episode in October 2026.

The latter’s offer for sale failed to materialise, forcing the return of investors’ money after certain irregularities were reportedly identified in the IPO transactions.

The SECP initiated regulatory action and an investigation into procedural irregularities and financial information, seeking export records and other financial details of SE Fruits from multiple banks and the company’s auditors

“SECP has received Khaadi’s IPO application, which is under review as part of the routine regulatory process,” said Muhammad Sajid Gondal, SECP Head of Media.

“Announcement of the book-building dates is the company’s prerogative, subject to the requisite approvals. SECP will issue a press statement once approval is granted,” he added.

Meanwhile, a PSX official told Business Recorder that the IPO is in the pipeline.

“We are in the process of receiving public comments on Khaadi’s prospectus at present,” the official said.

As earlier reports said, Khaadi, a subsidiary of Weaves Corp, plans to raise between Rs6.2 billion and Rs8.3 billion through the IPO to expand its retail outlet network.

Khaadi’s key market is Pakistan, and it also operates in the UAE, the UK and the US.