Sitara Petroleum Service Limited (SPSL) has unveiled plans for its Initial Public Offering (IPO), aiming to raise Rs4.8 billion to accelerate growth across its fuel retail network. According to the company’s prospectus, the proceeds will be directed toward expanding retail fuel stations, strengthening logistics operations, and enhancing storage infrastructure—key pillars to scale its footprint in Pakistan’s petroleum sector.
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The IPO marks a strategic move by SPSL to capitalize on rising energy demand, positioning itself for long-term growth and operational efficiency in an increasingly competitive market.
| IPO Aspect | Detail |
|---|---|
| Total IPO Size | Up to Rs4.8 billion |
| Total Shares Offered | 279.9 million ordinary shares |
| Post-IPO Stake | 16.66% |
| Public Offering | 168 million shares |
| Pre-IPO Placement | 111.9 million shares (already placed) |
| Floor Price | Rs13.50 per share |
| Upper Price Band | Rs18.90 (40% premium) |
| Institutional Allocation | 75% |
| Retail Allocation | 25% |
IPO Timeline
| Event | Date |
|---|---|
| Book Building | May 4–5, 2026 |
| Public Subscription | May 11–12, 2026 |
Use of Proceeds
Proceeds from the offering will be primarily deployed toward:
- Oil Storage Terminal: ~56% of IPO proceeds (largest allocation)
- Retail Expansion: Expanding fuel station network
- Logistics: Addition to company’s tanker fleet
The company has already raised approximately Rs1.66 billion through its pre-IPO placement at Rs14.85 per share. The IPO portion is expected to generate up to Rs3.175 billion at the cap price, taking total proceeds to nearly Rs4.83 billion.
Current Operations and Growth Plans
Headquartered in Lahore, SPSL is engaged in fuel trading, distribution and retail, along with petroleum logistics. As of the first half of FY2026, the company operated:
- 61 fuel retail outlets
- 320 oil tankers (primarily servicing Gas & Oil Pakistan)
The company plans to expand its retail network to more than 100 outlets over the next two years and increase its tanker fleet to 370 vehicles by 2027. It also aims to develop storage capacity as part of its strategy to transition into an Oil Marketing Company (OMC) in the coming years.
| Metric | Current | Target |
|---|---|---|
| Fuel Retail Outlets | 61 | 100+ (2 years) |
| Tanker Fleet | 320 | 370 (by 2027) |
Financial Performance
SPSL has reported strong growth:
- Revenue (FY2025): Rs121.9 billion (up from Rs40.9 billion in FY2024)
- Profit After Tax (FY2025): Rs3.25 billion
- Net Worth (1HFY2026): Rs11.37 billion
Leadership Perspectives
Zaheer Baig , Chief Executive Officer of Sitara Petroleum, stated that the IPO would support SPSL’s transition toward a more integrated business model, enabling investment in storage infrastructure and expansion of its retail and logistics footprint, while improving operational control and long-term growth prospects.
Shahid Ali Habib , CEO of Arif Habib Limited (lead manager and book runner), said: “Sitara Petroleum IPO reflects the growing depth and maturity of Pakistan’s capital markets, where fundamentally strong, expansion-driven companies are increasingly turning to equity financing. SPSL’s integrated business model, combined with its planned investments in storage and retail infrastructure, positions it well to capture long-term growth in the energy and logistics space.”
About Sitara Petroleum Service Limited
Sitara Petroleum Service Limited (SPSL) is a Lahore-based company engaged in fuel trading, distribution, retail, and petroleum logistics. The company is positioning itself for transition into a full-fledged Oil Marketing Company (OMC).
About Arif Habib Limited
Arif Habib Limited is a premier financial services firm in Pakistan, serving as the lead manager and book runner for the Sitara Petroleum IPO.
