Pakistan’s Mecom Gas weighs $20 million IPO to fund LPG storage: report

Mecom Gas Pvt Ltd. is considering an initial public offering (IPO) on the Pakistan Stock Exchange (PSX) to raise $20 million for the construction of a liquefied petroleum gas storage facility, Bloomberg reported. 

The LPG retailer is in talks with the investment bank Arif Habib Ltd. to advise on the planned offering, Chief Executive Officer Kamran Afzal said. Mecom Gas is looking to build 3,000 tons of storage capacity with the proceeds, he said.

The development comes as Pakistan’s energy sector faces supply and pricing pressures linked to the conflict in the Middle East.

Pakistan remains heavily dependent on Gulf countries for oil and gas imports and continues to face recurring balance-of-payments pressures.

According to the report, Pakistan’s current account returned to deficit in April after a rise in imports, mainly driven by higher global oil prices.

Kamran Afzal said the LPG sector had also been affected by the regional conflict, with LPG prices doubling during the last six months.

He added that expanding storage capacity would help reduce exposure to price fluctuations and improve supply stability.

According to the company, Pakistan’s existing LPG storage infrastructure needs to more than double to create adequate reserves and manage future disruptions.