Sitara Petroleum IPO Oversubscribed 7x, Targets Rs4.8 Billion in One of PSX’s Largest Offerings
Sitara Petroleum Service Limited has successfully concluded the book-building phase of its initial public offering (IPO), with overwhelming investor response leading to a 7x oversubscription. The strike price was set at PKR 18.90 per share—the upper end of the price band—indicating strong institutional demand.
Sitara Petroleum Service Limited has successfully concluded the book-building phase of its initial public offering (IPO), with overwhelming investor response leading to a 7x oversubscription. The strike price was set at PKR 18.90 per share—the upper end of the price band—indicating strong institutional demand.
With this development, the IPO ranks as the third largest on the Pakistan Stock Exchange, following offerings by Interloop Limited and Air Link Communication Limited.
The offering attracted bids exceeding PKR 11.7 billion, showcasing significant interest from institutional investors and high-net-worth individuals. The IPO consists of 279.9 million shares, representing 16.66% of the company’s paid-up capital.
While the book-building portion has been completed, the general public tranche remains fully underwritten, ensuring the successful completion of the offering. Including a pre-IPO placement of PKR 1.67 billion, the total transaction size is expected to reach up to PKR 4.8 billion, making it one of the most notable capital market transactions in recent years.
Sitara Petroleum operates a growing network of more than 61 fuel stations across Pakistan, supported by a logistics fleet of over 320 oil tankers. The company generates most of its revenue through dealer commissions, alongside a rapidly expanding logistics and carriage services segment that serves oil marketing companies.
The proceeds from the IPO will be used to fuel the company’s expansion plans, including the addition of approximately 50 new fuel stations and an increase of around 50 oil tankers to its fleet. These initiatives aim to strengthen its footprint in Pakistan’s downstream petroleum sector.
Following the book-building success, the public subscription phase is expected to proceed as scheduled, after which Sitara Petroleum Service Limited will be listed on the Pakistan Stock Exchange.
