Sitara Petroleum lists on PSX after Rs4.8bn IPO, demand surges across tranches

Sitara Petroleum Service Limited has been listed on the Pakistan Stock Exchange following the successful completion of its initial public offering (IPO), which raised Rs4.8 billion through pre-IPO and IPO offerings, according to a statement issued Thursday.

The listing marks one of the largest private-sector IPOs in the country, with total issuance comprising 279.9 million ordinary shares, representing 16.66% of the company’s post-IPO paid-up capital.

The pre-IPO portion included 111.9 million shares and raised Rs1.66 billion at Rs14.85 per share, while the IPO tranche comprised 168 million shares, equivalent to 10% of post-IPO paid-up capital.

Investor appetite remained strong across all segments, with around 25,000 applications received during the offering process.

In the book-building phase, 126 million shares were fully subscribed within eight minutes and ultimately oversubscribed seven times, reflecting aggressive institutional demand.

The retail portion of 42 million shares was also heavily subscribed, recording an oversubscription of 3.4 times and attracting approximately 24,000 applications.

Price discovery during the book-building process set the strike price at Rs18.90 per share, above the floor price of Rs13.50 per share.

The issue was managed by Arif Habib Limited and Integrated Equities Limited as joint lead managers.

At the listing ceremony, Farrukh H. Sabzwari said capital markets in Pakistan have remained resilient despite global economic pressures, with IPO activity continuing alongside rising investor participation.

He said retail investor numbers had reached 545,000, supported by awareness and investor education initiatives.

Sitara Petroleum CEO Zaheer Baig said IPO proceeds would fund expansion plans, including growth in the company’s retail fuel network, logistics, and fleet operations.

Arif Habib Limited CEO Shahid Ali Habib said strong participation from both institutional and retail investors reflected confidence in the company’s growth prospects and the broader equity market.