Sitara Petroleum Service Limited (SPSL) has announced its Initial Public Offering (IPO) to raise up to Rs 4.8 billion to expand its retail network, logistics, and storage infrastructure. The company is offering 279.9 million shares, representing 16.66% of its post-IPO capital, with public subscription set for May 11-12.

The IPO will utilise a book-building method with a floor price of Rs 13.50 per share and up to 40% pricing flexibility. Approximately 75% of the shares will be for institutional investors and high-net-worth individuals, while 25% is allocated for retail investors.

SPSL has already raised Rs 1.66 billion through pre-IPO placements. Proceeds will fund an oil storage terminal, fuel station expansion, and tanker fleet growth, with storage receiving around 56% of the funds. The company, currently operating 61 outlets and 320 tankers, aims to exceed 100 outlets and increase its fleet to 370 by 2027.

CEO Zaheer Baig noted that the IPO supports the company’s strategy to become an integrated Oil Marketing Company (OMC), while Arif Habib Limited’s CEO highlighted it as an opportunity for investors in a growing market. SPSL reported significant financial growth, with revenues rising to Rs121.9 billion in FY2025.