Sitara Petroleum Service Ltd to Launch Rs. 4.8 Billion IPO At PSX Next Month

Sitara Petroleum Service Limited (SPSL) has announced plans to launch its Initial Public Offering (IPO), aiming to raise up to Rs. 4.8 billion to finance the expansion of its fuel retail network, logistics operations, and storage infrastructure, according to the company’s prospectus.

The company is offering 279.9 million ordinary shares, representing 16.66 percent of its post-IPO paid-up capital. Out of this, 168 million shares will be available to the general public, while 111.9 million shares have already been placed through a pre-IPO transaction.

The book-building phase is scheduled for May 4–5, followed by public subscription on May 11–12.

The offering will follow the book-building method with a floor price set at Rs. 13.50 per share and a price band of up to 40 percent, setting the upper limit at Rs. 18.90 per share. Approximately 75 percent of the shares 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 for the transaction.

SPSL has already raised about Rs. 1.66 billion through a pre-IPO placement priced at Rs. 14.85 per share. The public offering is expected to generate up to Rs. 3.175 billion at the cap price, bringing total proceeds to nearly Rs. 4.83 billion.

The company plans to utilize the funds primarily for developing an oil storage terminal, expanding its fuel station network, and increasing the size of its tanker fleet. The storage terminal will receive the largest allocation, accounting for roughly 56 percent of the IPO proceeds, followed by investments in retail expansion and logistics capacity.

Headquartered in Lahore, SPSL operates in fuel trading, distribution, retail sales, and petroleum logistics. As of the first half of FY2026, the company managed 61 fuel retail outlets and operated a fleet of 320 oil tankers, mainly serving Gas & Oil Pakistan (GO).

Under its expansion strategy, SPSL aims to grow its retail footprint to over 100 outlets within the next two years and expand its tanker fleet to 370 vehicles by 2027. The company also plans to build storage capacity as part of its long-term goal of transitioning into a full-scale Oil Marketing Company (OMC).

Chief Executive Officer Zaheer Baig said the IPO would help transform SPSL into a more integrated energy business by supporting investments in storage infrastructure and strengthening its retail and logistics operations, ultimately enhancing operational efficiency and long-term growth.

Shahid Ali Habib, CEO of Arif Habib Limited, said the offering reflects the increasing maturity of Pakistan’s capital markets, where growth-focused companies are turning to equity financing to fund expansion. He noted that SPSL’s integrated model and planned investments position the company to benefit from long-term growth opportunities in the energy and logistics sectors.

Financially, SPSL has demonstrated strong performance, with revenue rising to Rs. 121.9 billion in FY2025 from Rs. 40.9 billion in FY2024, while profit after tax reached Rs. 3.25 billion. The company’s net worth stood at Rs. 11.37 billion as of the first half of FY2026.