Sitara Petroleum Service Limited (SPSL), an Aramco-backed fuel supplier, has announced plans to launch a Rs. 4.8 billion Initial Public Offering (IPO) at the Pakistan Stock Exchange next month. This move marks a significant step in the company’s growth strategy as it aims to expand its footprint in Pakistan’s energy and logistics sector.
According to the company’s prospectus, SPSL will offer 279.9 million ordinary shares, representing 16.66% of its post-IPO paid-up capital. Out of these, 168 million shares will be available to the general public, while 111.9 million shares have already been placed through a pre-IPO transaction. The book-building process is scheduled for May 4–5, followed by public subscription on May 11–12.
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The IPO will follow the book-building method, with a floor price of Rs. 13.50 per share and a maximum price cap of Rs. 18.90. Around 75% of shares will be allocated to institutional investors and high-net-worth individuals, while 25% will be offered to retail investors. Arif Habib Limited is acting as the lead manager and book runner for the offering.
SPSL has already raised approximately Rs. 1.66 billion through a pre-IPO placement at Rs. 14.85 per share. With the public offering, total proceeds are expected to reach nearly Rs. 4.83 billion. The company plans to use these funds primarily for building an oil storage terminal, expanding its fuel station network, and increasing its tanker fleet capacity. Notably, about 56% of the funds will be allocated to storage infrastructure.
Headquartered in Lahore, SPSL currently operates 61 fuel retail outlets and manages a fleet of 320 oil tankers, mainly serving Gas & Oil Pakistan. The company aims to expand to over 100 outlets within two years and grow its fleet to 370 tankers by 2027, with a long-term vision of becoming a full-scale Oil Marketing Company (OMC).
Financially, SPSL has shown impressive growth. Its revenue surged to Rs. 121.9 billion in FY2025, compared to Rs. 40.9 billion in FY2024, while profit after tax reached Rs. 3.25 billion. The company’s net worth stood at Rs. 11.37 billion as of the first half of FY2026.
CEO Zaheer Baig stated that the IPO will help transform the company into a more integrated energy business by strengthening its infrastructure and operational efficiency. Meanwhile, Shahid Ali Habib highlighted that the offering reflects the growing maturity of Pakistan’s capital markets, where companies are increasingly turning to equity financing for expansion.
Overall, SPSL’s IPO is expected to attract strong investor interest and play a key role in supporting the company’s ambitious expansion plans in Pakistan’s evolving energy sector.
