Sitara Petroleum Becomes 3rd Largest-Ever PSX IPO After 7x Oversubscription

Sitara Petroleum Becomes 3rd Largest-Ever PSX IPO After 7x Oversubscription

Sitara Petroleum Service Limited (SPSL) has successfully concluded its book-building phase on May 5, 2026, with the strike price determined at PKR 18.90 per share – the upper limit of the price band – reflecting strong and decisive institutional demand. The IPO was oversubscribed 7 times the offered size, marking a landmark achievement for Pakistan’s capital markets.

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With the conclusion of this IPO, Sitara Petroleum Service Limited’s offering becomes the third largest IPO in PSX history, trailing only Interloop and Airlink. The offering attracted investor interest of over PKR 11.7 billion, highlighting the depth of demand from institutional investors and high-net-worth individuals.

Key IPO MetricDetail
Strike PricePKR 18.90 per share (upper price band)
Oversubscription7x
Investor InterestPKR 11.7 billion+
Total Shares Offered279.9 million
Post-IPO Stake16.66% of paid-up capital
PSX Ranking3rd largest IPO ever (after Interloop & Airlink)

IPO Structure and Proceeds

The IPO comprises a total offering of 279.9 million shares, representing 16.66% of the company’s paid-up capital. The book-building portion has now been successfully completed, while the general public portion remains fully underwritten, ensuring completion of the overall offering.

Including the earlier pre-IPO placement of PKR 1.67 billion, the total transaction size stands at up to PKR 4.8 billion, positioning it among the most notable IPOs in recent years.

Transaction ComponentAmount
Pre-IPO PlacementPKR 1.67 billion
IPO ProceedsUp to PKR 3.175 billion (public portion)
Total Transaction SizeUp to PKR 4.8 billion

Use of Proceeds

The proceeds from the IPO will be deployed to support the company’s next phase of growth, including:

  • Addition of approximately 50 new fuel stations
  • Expansion of logistics fleet by around 50 oil tankers

About Sitara Petroleum Service Limited

Sitara Petroleum Service Limited (SPSL) operates one of Pakistan’s leading fuel station management and logistics platforms, with a current network of:

  • 61+ fuel stations
  • 320+ oil tankers

The company derives the majority of its revenues from dealer commissions, complemented by a growing logistics and carriage services segment catering to oil marketing companies.

Next Steps

The public subscription phase is expected to proceed as scheduled, after which Sitara Petroleum Service Limited will be listed on the Pakistan Stock Exchange (PSX).

About Sitara Petroleum Service Limited

Headquartered in Lahore, Sitara Petroleum Service Limited is engaged in fuel trading, distribution, retail, and petroleum logistics. The company is positioning itself for transition into a full-fledged Oil Marketing Company (OMC) in the coming years.

About Arif Habib Limited

Arif Habib Limited acted as the lead manager and book runner to the issue, successfully orchestrating one of the largest and most successful IPOs in PSX history.

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