10th IPO of the year: Sitara Petroleum Service Limited listed on PSX

Sitara Petroleum Service Limited has been listed on the Pakistan Stock Exchange (PSX) after completing its initial public offering (IPO), the PSX said on Thursday.

According to a press release, the IPO raised Rs4.8 billion through pre-IPO and IPO offerings, making it one of the largest private sector IPOs in Pakistan.

The company said around 25,000 applications were received during the book building and retail subscription phases.

The book building portion, comprising 126 million ordinary shares, was fully subscribed within eight minutes and oversubscribed seven times, while the retail portion of 42 million shares was oversubscribed by 3.4 times, attracting around 24,000 applications.

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

The overall transaction included 279.9 million ordinary shares through pre-IPO and IPO offerings, representing 16.66% of the company’s post-IPO paid-up capital.

The pre-IPO component consisted of 111.9 million ordinary shares and raised Rs1.66 billion at Rs14.85 per share.

The IPO component included 168 million ordinary shares, representing 10% of the company’s post-IPO paid-up capital.

The floor price for the IPO was set at Rs13.50 per share, while the strike price was discovered at Rs18.90 per share during the book building process.

The company said the offering attracted participation from institutional investors, corporate entities, high-net-worth individuals and retail investors.

Arif Habib Limited and Integrated Equities Limited acted as joint lead managers for the issue.

Speaking at the listing ceremony, PSX Managing Director and CEO Farrukh H. Sabzwari said Pakistan’s capital markets had remained resilient and IPO activity continued despite global economic challenges.

He said retail investor numbers had reached 545,000, supported by investor education and awareness initiatives.

Sitara Petroleum Service Limited CEO Zaheer Baig said the IPO proceeds would support the company’s expansion plans, including growth in its retail fuel station network, logistics and fleet operations.

Arif Habib Limited CEO Shahid Ali Habib said the level of participation from institutional and retail investors reflected confidence in Pakistan’s equity market and the company’s growth prospects.