Sitara Petroleum Service Limited (SPSL), a Lahore-based fuel trader, has announced its Initial Public Offering (IPO), seeking to raise up to Rs4.8 billion (USD17.2 million) to finance expansion in its fuel retail network, logistics operations and storage infrastructure, according to its IPO prospectus.
As per details, the company, engaged in distribution and retail, along with petroleum logistics, is offering a total of 279.9 million ordinary shares, representing 16.66% of its post-IPO paid-up capital. Of these, 168 million shares are being offered to the public, while 111.9 million shares have already been placed through a pre-IPO transaction.
The book building process is scheduled for May 4–5, followed by public subscription on May 11–12.
Pakistan’s Sitara Petroleum plans to go public: report
The IPO will be conducted through the book building method at a floor price of Rs13.50 per share, with a price band of up to 40%, taking the upper limit to Rs18.90.
Around 75% of the offer will be allocated to institutional investors and high-net-worth individuals, while the remaining 25% will be offered to retail investors at the strike price.
Arif Habib Limited is acting as the lead manager and book runner to the issue.
The company has already raised approximately Rs1.66 billion through its pre-IPO placement at Rs14.85 per share. The IPO portion is expected to generate up to Rs3.175 billion at the cap price, taking total proceeds to nearly Rs4.83 billion.
Proceeds from the offering will be primarily deployed toward the development of an oil storage terminal, expansion of fuel stations and addition to the company’s tanker fleet. The storage terminal accounts for the largest allocation, at around 56% of IPO proceeds, followed by retail expansion and logistics.
The company plans to expand its retail network to more than 100 outlets over the next two years, while increasing its tanker fleet to 370 vehicles by 2027. It also aims to develop storage capacity as part of its strategy to transition into an OMC in the coming years.
On Wednesday, the Securities and Exchange Commission of Pakistan approved the initial public offerings (IPOs) of Sitara Petroleum Service Limited.
“The IPO would support SPSL’s transition toward a more integrated business model, enabling investment in storage infrastructure and expansion of its retail and logistics footprint, while improving operational control and long-term growth prospects,” said Chief Executive Officer (CEO) Zaheer Baig.
“Sitara Petroleum IPO reflects the growing depth and maturity of Pakistan’s capital markets, where fundamentally strong, expansion-driven companies are increasingly turning to equity financing,” said Shahid Ali Habib, CEO of Arif Habib Limited.
“We believe this offering presents a compelling opportunity for investors to participate in a scalable and evolving business.”
Financially, SPSL has reported strong growth, with revenue rising to Rs121.9 billion in FY2025 from Rs40.9 billion in FY2024, while profit after tax increased to Rs3.25 billion. Net worth stood at Rs11.37 billion in the first half of FY2026.
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