Sitara Petroleum IPO hits 7x oversubscription, prices at top end

Sitara Petroleum Service Limited (SPSL) priced its initial public offering at PKR 18.90 per share on Tuesday after the book-building phase drew bids worth over PKR 11.7 billion, resulting in an oversubscription of around seven times.

The strike price was set at the upper end of the price band, indicating firm demand from institutional investors and high-net-worth individuals.

The IPO comprises 279.9 million shares, representing 16.66 percent of the company’s paid-up capital. Combined with a pre-IPO placement of PKR 1.67 billion, the total transaction size is expected to reach up to PKR 4.8 billion.

Market participants said the deal would rank as the third-largest listing on the Pakistan Stock Exchange, after Interloop and Airlink.

The book-building portion has been completed, while the retail tranche remains fully underwritten. The company will now move ahead with the public subscription phase before listing on the exchange.

Sitara Petroleum operates a network of more than 61 fuel stations and manages a logistics fleet of over 320 oil tankers. The company generates most of its revenue through dealer commissions, alongside a growing contribution from logistics and carriage services provided to oil marketing companies.

Proceeds from the offering will be used to fund expansion plans, including the addition of around 50 new fuel stations and approximately 50 oil tankers, as the company looks to scale its footprint in Pakistan’s downstream petroleum sector.