Sitara Petroleum Service Limited (SPSL) has successfully concluded the book-building phase of its initial public offering (IPO), with the strike price finalized at PKR 18.90 per share, the upper end of the announced price band, reflecting robust institutional participation and strong investor confidence.
The company announced that the IPO was oversubscribed seven times, underscoring significant demand from institutional investors and high-net-worth individuals amid growing interest in Pakistan’s energy and logistics sectors.
With the completion of the offering, the SPSL IPO has become the third-largest IPO on the Pakistan Stock Exchange, following the listings of Interloop Limited and Air Link Communication Limited.
Strong Institutional Demand Drives Premium Pricing
According to details shared by the company, the offering attracted investor interest exceeding PKR 11.7 billion during the book-building process.
The IPO consists of a total offering of 279.9 million shares, representing 16.66% of the company’s paid-up capital.
The strike price was determined at PKR 18.90 per share, marking the upper limit of the price band and signaling strong institutional appetite for the transaction.
The company further noted that while the book-building portion has been completed successfully, the general public offering remains fully underwritten, ensuring the successful completion of the overall transaction.
Transaction Size Reaches PKR 4.8 Billion
Including an earlier pre-IPO placement valued at PKR 1.67 billion, the total transaction size has reached up to PKR 4.8 billion, positioning the offering among Pakistan’s most notable IPOs in recent years.
The successful offering comes at a time when investor sentiment toward Pakistan’s capital markets has shown renewed momentum, particularly in sectors tied to infrastructure, energy, and logistics.
Expansion Plans Across Pakistan
Sitara Petroleum Service Limited operates one of Pakistan’s major fuel station management and logistics platforms, managing a network of more than 61 fuel stations alongside a fleet of over 320 oil tankers.
The company generates most of its revenue through dealer commissions, while its logistics and carriage services segment has continued to expand by serving multiple oil marketing companies.
According to the company, proceeds from the IPO will support its next phase of expansion, including the addition of approximately 50 new fuel stations and around 50 more oil tankers to its logistics fleet.
The planned expansion is expected to strengthen SPSL’s footprint across Pakistan’s downstream petroleum value chain and enhance its operational capacity nationwide.
Public Subscription Phase to Follow
Following the completion of the book-building phase, the public subscription portion of the IPO is expected to proceed according to schedule. Upon completion, Sitara Petroleum Service Limited will formally list on the Pakistan Stock Exchange.