KARACHI: Sitara Petroleum Service Limited has announced its Initial Public Offering (IPO) to raise up to Rs4.8 billion to fund major expansion plans in fuel retail, logistics operations, and petroleum storage infrastructure, according to the company’s prospectus.
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The company will offer 279.9 million ordinary shares, representing 16.66% of its post-IPO paid-up capital. Out of this, 168 million shares will be offered to the public, while 111.9 million shares have already been placed through a pre-IPO transaction.
The book-building process is scheduled for May 4–5, followed by public subscription on May 11–12. The IPO is being launched at a floor price of Rs13.50 per share, with a price band of up to 40%, setting the upper limit at Rs18.90 per share.
Under the structure, approximately 75% of the offering will be allocated to institutional investors and high-net-worth individuals, while 25% will be reserved for retail investors at the strike price. Arif Habib Limited is acting as the lead manager and book runner.
According to the prospectus, Sitara Petroleum has already raised around Rs1.66 billion through its pre-IPO placement at Rs14.85 per share. The remaining IPO proceeds are expected to generate up to Rs3.175 billion, taking total fundraising close to Rs4.83 billion.
The company said the funds will primarily be used for the development of an oil storage terminal, expansion of its fuel station network, and increase in its tanker fleet. The storage terminal will receive the largest share of investment at around 56%, followed by retail expansion and logistics infrastructure.
Headquartered in Lahore, Sitara Petroleum operates in fuel trading, distribution, and petroleum logistics. As of the first half of FY2026, the company operates 61 fuel retail outlets and a fleet of 320 oil tankers, mainly serving Gas & Oil Pakistan (GO).
The company plans to expand its retail footprint to over 100 fuel stations within the next two years and increase its tanker fleet to 370 vehicles by 2027. It also aims to evolve into a fully integrated Oil Marketing Company (OMC) by strengthening its storage capacity and supply chain control.
Chief Executive Officer Zaheer Baig said the IPO will accelerate the company’s transition toward an integrated energy business model, improving operational efficiency and long-term growth potential.
Arif Habib Limited CEO Shahid Ali Habib said the IPO reflects growing investor confidence in Pakistan’s capital markets, noting that energy and logistics companies with strong fundamentals are increasingly turning to equity financing for expansion.
Financial results show strong growth momentum, with revenue rising to Rs121.9 billion in FY2025 from Rs40.9 billion in FY2024. Profit after tax increased to Rs3.25 billion, while net worth stood at Rs11.37 billion in the first half of FY2026.
