What happened
Sitara Petroleum Service Limited raised up to Rs4.8 billion ($17.2 million) in an initial public offering that was oversubscribed seven times during book-building, the company said on Tuesday, signalling strong investor demand ahead of its listing on the Pakistan Stock Exchange.
The company said bids totalled more than Rs11.7 billion ($42 million), driven by institutional investors and high-net-worth individuals. “The strike price was determined at Rs18.90 per share, the upper limit of the price band, reflecting strong and decisive institutional demand,” it said.
How the offering is structured
The offering comprises 279.9 million shares, representing 16.66 percent of the company’s paid-up capital. The book-building tranche has been completed while the retail portion remains fully underwritten, ensuring completion of the transaction, the company said.
Including a pre-IPO placement of Rs1.67 billion ($6 million), the total deal size stands at up to Rs4.8 billion ($17.2 million), which the company described as one of the largest listings on the Pakistan Stock Exchange in recent years.
Why it matters
Sitara operates a fuel station management and logistics platform with a network of more than 61 fuel stations and a fleet of over 320 oil tankers. It generates most of its revenue through dealer commissions, alongside a growing logistics and carriage segment serving oil marketing companies.
The company plans to use the proceeds to expand its footprint across Pakistan’s downstream petroleum sector, including adding around 50 new fuel stations and increasing its oil tanker fleet by about 50 vehicles. The expansion is tied to domestic energy demand and distribution capacity, and comes as retail fuel prices have been volatile.
The listing also adds to a limited pipeline of new offerings in Pakistan’s equity market, which has drawn renewed interest from institutional investors.
What is still uncertain
The public subscription phase is expected to follow before the company proceeds to listing, but the company gave no timetable for the retail offering or the first day of trading. Its statement did not identify the institutional bidders or break down the final share allocation.
Sources & reporting notes
This is a synthesis of published material, not eyewitness reporting. Sources were reviewed on 2026-05-05.
- Primary source — Arab News PK: “Pakistan Sitara Petroleum raises up to $17.2 million in IPO oversubscribed 7 times”5 May 2026 · Reports the book-building outcome, strike price, bid value, share structure, deal size and the company's expansion plans.
