ISLAMABAD: Pakistan’s Sitara Petroleum Service Limited said on Wednesday it has launched an initial public offering (IPO) to raise up to Rs4.8 billion ($17 million) to expand its fuel retail network and build storage infrastructure, as the company seeks to scale operations in the country’s energy sector.
The offering comes as Pakistan’s energy supply chain faces persistent challenges, including limited storage capacity and reliance on fragmented distribution networks, with companies increasingly turning to capital markets to fund expansion and improve logistics.
An IPO, or initial public offering, is when a private company sells shares to the public for the first time to raise capital, typically to finance growth and infrastructure.
“The company is seeking to raise up to Rs4.8 billion through the IPO to finance expansion in its fuel retail network, logistics operations and storage infrastructure,” the prospectus said.
Sitara Petroleum plans to use the proceeds primarily to develop an oil storage terminal, which will account for about 56 percent of the funds, alongside expanding fuel stations and increasing its tanker fleet.
The company currently operates 61 fuel retail outlets and a fleet of 320 oil tankers, and plans to expand its network to more than 100 outlets over the next two years while increasing its fleet to 370 vehicles by 2027.
The IPO will offer 279.9 million shares, representing 16.66 percent of the company’s post-listing capital, with the book-building process scheduled for early May and public subscription later in the month.
Sitara Petroleum has already raised Rs1.66 billion ($5.9 million) in a pre-IPO placement and expects total proceeds to reach nearly Rs4.83 billion ($17.2 million) at the upper end of the price band.
The company aims to transition into a full-scale oil marketing company, a move that would allow it to operate across the fuel supply chain, from storage to retail.
Pakistan’s stock market has seen renewed activity in recent months as macroeconomic stability improves under an IMF-backed reform program, encouraging companies to tap equity markets for expansion.
