Sitara Petroleum raises Rs4.8bn by selling 279.9mn shares at PSX

Sitara Petroleum Service has raised a total of Rs4.8 billion through selling a total of 279.9 million shares at initial public offering (IPO) at the Pakistan Stock Exchange (PSX) and pre-IPO private placement, emerging as the third-largest private sector IPO in Pakistan’s history.

Breakup suggests institutional and high net worth individual investors bought the entire offered lot of 126 million shares at a 40% premium price of Rs18.50 per share in a record first eight minute of the two-day Dutch bidding (book building) process culminated on Tuesday.

Also read: Sitara Petroleum IPO hits Rs18.90 cap price within 10 minutes

The company opened bidding at minimum (floor) price of Rs13.50 per share on Monday, according to Arif Habib Limited (AHL), the lead manager of the issuance.

The firm is scheduled to sell another 42 million shares at the strike price of Rs18.50 per share to retail investors on May 11-12, 2026.

Besides, Sitara Petroleum sold another 111.914 million shares at Rs14.85 per share at pre-IPO private placement, the company reported in its prospectus available at the PSX website.

AHL reported the fuel trader and petroleum retail operator closed its IPO on a historic high, raising a total of Rs4.8 billion with an exceptional 7-time oversubscription, while the book was fully subscribed in a record 8 minutes.

Priced at the maximum cap with a 40% premium, “it now stands as the 3rd largest private sector IPO in Pakistan’s capital market history,” the lead manager said.

The Securities and Exchange Commission of Pakistan (SECP) said in a separate statement that Sitara Petroleum, engaged in fuel trading and petroleum retail operations, plans to utilise the proceeds to expand its business footprint and strengthen its operational capacity.

“Market participants noted that the overwhelming response to the IPO highlights improving liquidity conditions and increasing investor participation in the equity market. It also signals growing confidence in Pakistan Stock Exchange, despite regional uncertainties and macroeconomic challenges,” the SECP said.