KARACHI: Pakistan’s Sitara Petroleum Service Limited has raised up to Rs4.8 billion ($17.2 million) in an initial public offering that was oversubscribed seven times during book-building, the company said on Tuesday, signaling strong investor demand ahead of its listing on the Pakistan Stock Exchange.
The company, which operates a fuel station management and logistics platform, plans to use the proceeds to expand its footprint across Pakistan’s downstream petroleum sector, including adding around 50 new fuel stations and increasing its oil tanker fleet by about 50 vehicles. The expansion underscores a push to scale operations in fuel retail and logistics, a segment tied to domestic energy demand and distribution capacity.
The IPO attracted bids worth more than Rs11.7 billion ($42 million), with institutional investors and high-net-worth individuals driving demand.
“The strike price was determined at Rs18.90 per share, the upper limit of the price band, reflecting strong and decisive institutional demand,” the company said.
The offering comprises 279.9 million shares, representing 16.66 percent of the company’s paid-up capital, with the book-building tranche now completed while the retail portion remains fully underwritten, ensuring completion of the transaction.
Including a pre-IPO placement of Rs1.67 billion ($6 million), the total deal size stands at up to Rs4.8 billion ($17.2 million), making it one of the largest listings on the Pakistan Stock Exchange in recent years.
The public subscription phase is expected to follow before the company proceeds to listing on the Pakistan Stock Exchange, adding to a limited pipeline of new listings in Pakistan’s equity market.
Sitara Petroleum operates a network of more than 61 fuel stations and a fleet of over 320 oil tankers, generating most of its revenue through dealer commissions alongside a growing logistics and carriage segment serving oil marketing companies.
