Retail network, storage boost: Sitara Petroleum IPO seeks to raise Rs4.8bn

KARACHI: Sitara Petroleum Service Limited (SPSL) has announced its Initial Public Offering (IPO), seeking to raise up to Rs4.8 billion to finance expansion in its fuel retail network, logistics operations and storage infrastructure, according to its IPO prospectus.

The company is offering a total of 279.9 million ordinary shares, representing 16.66 percent 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.

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 percent, taking the upper limit to Rs18.90.

Around 75 percent of the offer will be allocated to institutional investors and high-net-worth individuals, while the remaining 25 percent 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.

Headquartered in Lahore, SPSL is engaged in fuel trading, distribution and retail, along with petroleum logistics. As of the first half of FY2026, the company operated 61 fuel retail outlets and a fleet of 320 oil tankers, primarily servicing Gas & Oil Pakistan (GO).

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 Oil Marketing Company (OMC) in the coming years.

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Chief Executive Officer Zaheer Baig said 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.

Shahid Ali Habib, CEO Arif Habib Limited, said that 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. SPSL’s integrated business model, combined with its planned investments in storage and retail infrastructure, positions it well to capture long-term growth in the energy and logistics space. 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 Rs 40.9 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.

Copyright Business Recorder, 2026