In a landmark achievement for Pakistan’s energy and petroleum sector, Sitara Petroleum Service Limited has successfully completed its Initial Public Offering (IPO), receiving an overwhelming response from investors during both the book building and public subscription phases.
The IPO witnessed the highest ever participation in Pakistan’s IPO history with approximately 25,000 applications received across the Book Building and Retail segments. The transaction raised PKR 4.8 billion, making it one of the largest private sector IPO in Pakistan’s history. The Book Building portion, comprising 126,000,000 ordinary shares, was fully subscribed within just 8 minutes and was oversubscribed by 7 times, while the Retail portion comprising 42,000,000 ordinary shares was oversubscribed by 3.4 times with approximately 24,000 applications received from investors nationwide. This overwhelming response highlights the growing strength, depth, and investor participation in Pakistan’s equity capital market.
The overall transaction comprised a total offering of 279,914,000 ordinary shares through Pre-IPO and IPO, representing 16.66% of the company’s post-IPO paid-up capital. The Pre-IPO component consisted of 111,914,000 ordinary shares representing 6.66% of the post-IPO paid-up capital and successfully raised PKR 1.66 billion at PKR 14.85 per share. The IPO component consisted of 168,000,000 ordinary shares representing 10.00% of the post-IPO paid-up capital.
The floor price for the IPO was set at PKR 13.50 per share. Following strong investor participation during the Book Building process, the strike price was successfully discovered at PKR 18.90 per share hitting the upper price band. Consequently, the IPO transaction size stood at PKR 3.17 billion at the strike price, compared to PKR 2.27 billion at the floor price.
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The offering attracted participation from a broad spectrum of investors, including institutional investors, corporate entities, high-net-worth individuals, and retail investors, demonstrating widespread confidence in the company’s future outlook.
Arif Habib Limited and Integrated Equities Limited acted as the Joint Lead Managers to the Issue and played a pivotal role in successfully executing the IPO process.
At the listing ceremony, Mr. Farrukh H. Sabzwari, Managing Director & CEO of PSX stated: “It is very heartening to see that despite global challenges, Pakistan’s capital markets have remained resilient and the IPO momentum continues. This success is a testament to the tireless efforts of the regulators, particularly SECP, in streamlining the IPO process, and to the collaboration of institutions such as CDC and NCCPL.
The investor community has shown remarkable confidence, with approximately 25,000 applications and serious institutional capital participating in this landmark transaction. Retail investor numbers have now reached 545,000, driven by education & awareness initiatives targeting Gen Z and millennials, which is a very encouraging trend for the future of our markets.
As I emphasized at the recent IPO Roundtable in Gujranwala, it takes years of hard work, unwavering commitment, and flawless execution to bring a company to the point where it is ready to list on a national exchange, and Sitara Petroleum Service Limited is a shining example of exactly that journey. I congratulate the company, its sponsors, and all stakeholders on this momentous achievement, and look forward to even larger transactions in the future.”
Commenting on this milestone achievement, Mr. Zaheer Baig, Chief Executive Officer of Sitara Petroleum Service Limited stated: “Today marks a proud and historic milestone for Sitara Petroleum Service Limited as we formally join the Pakistan Stock Exchange family. The successful completion of our IPO reflects the confidence of investors in our business model, our growth strategy, and our long-term commitment to Pakistan’s energy and logistics sector.
This listing is not just a capital market transaction; it is the beginning of a new phase of institutional growth, transparency, and value creation for all stakeholders. The proceeds from the IPO will help us accelerate our expansion plans, strengthen our retail fuel station network, enhance logistics and fleet operations, and further improve service delivery across the country.
We are grateful to our investors, regulators, advisors, the Pakistan Stock Exchange, Arif Habib Limited, Integrated Equities Limited and all partners who supported us throughout this journey. We also thank our employees, customers, dealers, and business partners whose trust and dedication have enabled Sitara Petroleum to reach this important stage.
As a listed company, we remain fully committed to strong governance, sustainable growth, and delivering long-term value to our shareholders while contributing positively to Pakistan’s economy.”
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Mr. Shahid Ali Habib, Chief Executive Officer of Arif Habib Limited, commented on the successful IPO, stating:
We are proud to have successfully concluded the IPO of Sitara Petroleum Service Limited, which has emerged as one of the most successful and widely participated IPOs in Pakistan’s capital market. The IPO set several important milestones, including one of the highest ever participation in Pakistan’s IPO history with approximately 25,000 applications, raising approximately PKR 4.8 billion as the third largest private sector IPO in Pakistan, and achieving full subscription of the Book Building portion within just 8 minutes with an oversubscription of 7 times.
The Retail portion also witnessed an overwhelming response with 3.4 times oversubscription and approximately 24,000 applications received from investors nationwide.
The exceptional participation from institutional and retail investors reflects growing investor confidence in Pakistan’s equity markets and Sitara Petroleum Service Limited’s long-term growth potential. We thank all investors and stakeholders for their trust and confidence in this landmark transaction.
