Sitara Petroleum announces Rs4.8bn IPO to fund expansion

ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 22nd Apr, 2026) Sitara Petroleum Service Limited (SPSL) has announced an Initial Public Offering (IPO) to raise Rs4.8 billion for expanding its fuel retail network, logistics, and storage infrastructure, according to its prospectus.

The company is offering 279.9 million ordinary shares, which make up 16.66% of its post-IPO paid-up capital. Out of these, 168 million shares will be offered to the public, while 111.9 million shares have already been sold through a pre-IPO placement.

The book-building process will take place on May 4–5, followed by public subscription on May 11–12. The IPO will be conducted at a floor price of Rs 13.50 per share, with a price band of up to 40%, setting the upper limit at Rs 18.90.

Around 75% of the shares will be allocated to institutional investors and high-net-worth individuals, while 25% will be available to retail investors at the final strike price.

Arif Habib Limited is acting as the lead manager and book runner for the issue.

The company has already raised about Rs1.66 billion through a pre-IPO placement at Rs14.85 per share. The IPO is expected to generate up to Rs3.17 billion, taking total proceeds close to Rs4.83 billion.

Most of the funds will be used to build an oil storage terminal, expand fuel stations, and increase the tanker fleet. The storage project will receive the largest share, about 56% of the IPO proceeds.

Based in Lahore, SPSL operates in fuel trading, distribution, and retail, along with petroleum logistics. As of the first half of FY2026, it had 61 fuel stations and a fleet of 320 oil tankers, mainly serving Gas & Oil Pakistan.

The company plans to expand its retail network to over 100 outlets within two years and increase its tanker fleet to 370 vehicles by 2027. It also aims to develop storage capacity as part of its plan to become an Oil Marketing Company (OMC).

Chief Executive Officer Zaheer Baig said the IPO will help the company move towards a more integrated business model and support long-term growth.

Shahid Ali Habib said the IPO reflects the growing strength of Pakistan’s capital markets and offers investors an opportunity to invest in a growing company.

SPSL has reported strong financial growth, with revenue rising to Rs121.9 billion in FY2025 from Rs40.9 billion in FY2024, while profit after tax reached Rs3.25 billion. Its net worth stood at Rs11.37 billion in the first half of FY2026.