Sitara Petroleum Service Limited (SPSL) has announced plans to raise up to Rs4.8 billion ($17.2 million) through an Initial Public Offering (IPO), as the company looks to accelerate expansion across its fuel retail network, logistics operations, and storage infrastructure, according to its prospectus.
The offering marks a significant step in SPSL’s growth trajectory, positioning the Lahore-headquartered firm to strengthen its footprint in Pakistan’s evolving energy and logistics sector.
IPO Structure and Timeline
SPSL is offering 279.9 million ordinary shares, representing 16.66% of its post-IPO paid-up capital. Of these, 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 to take place on May 4-5, followed by public subscription on May 11-12.
The IPO will be conducted through the book-building method, with a floor price of Rs13.50 per share and a price band of up to 40%, setting the upper limit at Rs18.90.
Approximately 75% of the offering will be allocated to institutional investors and high-net-worth individuals, while the remaining 25% will be offered to retail investors at the strike price.
Arif Habib Limited is serving as the lead manager and book runner for the issue.
Pre-IPO Placement and Fundraising Target
The company has already secured approximately Rs1.66 billion through a pre-IPO placement at Rs14.85 per share. The IPO itself is expected to raise up to Rs3.175 billion at the cap price, bringing total proceeds to nearly Rs4.83 billion.
Strategic Use of Proceeds
SPSL plans to channel the majority of the funds toward the development of an oil storage terminal, which will account for approximately 56% of IPO proceeds. The remaining funds will support the expansion of its fuel station network and the addition of new tankers to its logistics fleet.
The investment reflects a broader strategy to enhance operational capacity and improve supply chain efficiency.
Expansion Plans and Operational Growth
Currently, SPSL operates 61 fuel retail outlets and maintains a fleet of 320 oil tankers, primarily servicing Gas & Oil Pakistan.
The company aims to expand its retail network to more than 100 outlets over the next two years, while increasing its tanker fleet to 370 vehicles by 2027. It is also pursuing the development of storage capacity as part of its long-term ambition to transition into a full-fledged Oil Marketing Company (OMC).
Chief Executive Officer Zaheer Baig said the IPO would support SPSL’s transition toward a more integrated business model, enabling investment in storage infrastructure and expansion of its retail and logistics footprint, while improving operational control and long-term growth prospects.
Shahid Ali Habib, CEO of Arif Habib Limited, emphasized the broader market implications, stating: “Sitara Petroleum IPO reflects the growing depth and maturity of Pakistan’s capital markets, where fundamentally strong, expansion-driven companies are increasingly turning to equity financing. SPSL’s integrated business model, combined with its planned investments in storage and retail infrastructure, positions it well to capture long-term growth in the energy and logistics space. We believe this offering presents a compelling opportunity for investors to participate in a scalable and evolving business.”
Financial Performance
SPSL has reported robust financial growth in recent years. Its revenue surged to Rs121.9 billion in FY2025, up from Rs40.9 billion in FY2024, while profit after tax rose to Rs3.25 billion. The company’s net worth stood at Rs11.37 billion in the first half of FY2026, underscoring its strengthening financial position ahead of the public listing.