Sitara Petroleum Service Limited (SPSL), a fuel distribution and logistics company connected to the supply network of Saudi energy giant Saudi Aramco, has announced an Initial Public Offering (IPO) aimed at raising up to Rs4.8 billion to support its nationwide expansion plans.
According to the company’s prospectus, SPSL will offer 279.9 million ordinary shares, representing 16.66% of its post-listing paid-up capital. The offering includes 168 million shares available to the public, while 111.9 million shares have already been placed through a pre-IPO investment round.
The book-building phase is scheduled for May 4 and 5, followed by public subscription on May 11 and 12. The IPO will be conducted under the book-building mechanism with a floor price of Rs13.50 per share and a price band extending up to 40%, setting the maximum price at Rs18.90.
Approximately 75% of the issue will be allocated to institutional investors and high-net-worth individuals, while retail investors will be offered the remaining 25% at the final strike price. Arif Habib Limited is serving as the lead manager and book runner for the transaction.
The company has already secured roughly Rs1.66 billion through its pre-IPO placement at Rs14.85 per share. At the upper price band, the public offering is expected to raise up to Rs3.175 billion, taking total proceeds close to Rs4.83 billion.
Funds raised through the IPO will primarily finance the development of an oil storage terminal, expansion of fuel retail outlets, and enhancement of logistics operations through fleet growth. The storage terminal project represents the largest portion of planned investment, accounting for nearly 56% of the IPO proceeds.
Based in Lahore, SPSL operates across fuel trading, distribution, retail operations, and petroleum logistics. As of the first half of FY2026, the company operated 61 fuel stations and maintained a fleet of 320 oil tankers, largely servicing Gas & Oil Pakistan (GO), which markets fuels sourced through international supply arrangements including Aramco-linked channels.
The company plans to expand its retail network to more than 100 outlets within two years while increasing its tanker fleet to 370 vehicles by 2027. SPSL is also working toward establishing storage capacity to support its long-term objective of becoming a fully integrated Oil Marketing Company (OMC).
Chief Executive Officer Zaheer Baig said the IPO would accelerate SPSL’s transition toward an integrated energy model by strengthening storage capabilities and expanding retail and logistics infrastructure, ultimately improving operational efficiency and growth prospects.
Shahid Ali Habib, CEO of Arif Habib Limited, noted that the offering highlights the increasing role of equity markets in financing expansion-oriented businesses in Pakistan. He added that SPSL’s integrated operations and infrastructure investments position it well to capitalize on long-term opportunities in the country’s energy and logistics sectors.
SPSL has reported strong financial momentum, with revenue rising to Rs121.9 billion in FY2025 compared to Rs40.9 billion a year earlier, while profit after tax reached Rs3.25 billion. The company’s net worth stood at Rs11.37 billion during the first half of FY2026.
