Pakistan's Sitara Petroleum launches IPO to raise up to PKR 4.83B

Sitara Petroleum Service Limited has announced an initial public offering to raise PKR 4.83 billion, as the Lahore-based fuel distribution and logistics company seeks to fund expansion of its retail network, tanker fleet, and storage infrastructure, according to its IPO prospectus.

The company 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 that raised approximately PKR 1.66 billion at PKR 14.85 per share.

The book building process is scheduled for May 4-5, followed by public subscription on May 11-12. The floor price has been set at PKR 13.50 per share, with a price band of up to 40%, taking the upper limit to PKR 18.90. At the cap price, the IPO portion is expected to generate up to PKR 3.18 billion, bringing total proceeds to nearly PKR 4.83 billion.

Around 75% of the offer will be allocated to institutional investors and high-net-worth individuals, with the remaining 25% offered to retail investors at the strike price. Arif Habib Limited is acting as the lead manager and bookrunner.

Where the money goes

The largest share of proceeds, around 56%, will be directed toward the development of an oil storage terminal, with the remainder allocated to retail network expansion and additions to the company's tanker fleet. The company currently operates 61 fuel retail outlets and a fleet of 320 oil tankers, primarily servicing Gas & Oil Pakistan.

SPSL plans to expand its retail network to more than 100 outlets over the next two years and grow its tanker fleet to 370 vehicles by 2027. The storage terminal development is part of a broader strategy to transition into a full Oil Marketing Company in the coming years.

Chief Executive Officer Zaheer Baig said the IPO would support the company's shift toward a more integrated business model, enabling investment in storage infrastructure and expansion of its retail and logistics footprint while improving long-term operational control.

Shahid Ali Habib, CEO of Arif Habib Limited, said the offering reflects the growing depth of Pakistan's capital markets, where fundamentally strong, expansion-driven companies are increasingly turning to equity financing. He described SPSL's integrated model and planned infrastructure investments as positioning it well to capture long-term growth in the energy and logistics space.

Financial performance

SPSL has reported strong growth in recent years, with revenue rising from PKR 40.9 billion in fiscal year 2024 to PKR 121.9 billion in fiscal year 2025. Profit after tax reached PKR 3.25 billion in the same period, while net worth stood at PKR 11.37 billion as of the first half of fiscal year 2026.