Sitara Petroleum IPO Pakistan: Rs. 3.2 Billion Listing Plan
Sitara Petroleum IPO is set to hit the market next month. The company plans to raise up to Rs. 3.2 billion. Strong investor demand has encouraged new listings across Pakistan. The offering could become the second largest IPO in four years. Market momentum has lifted investor confidence. As a result, more firms now plan to raise capital through equities. Pakistan’s benchmark index has jumped over 61 percent in the past year. Therefore, companies see better chances to secure funding. Retail investors have also returned to the market in large numbers.
Pre-IPO Support From Institutions
Sitara Petroleum has already secured Rs. 1.66 billion in a pre-IPO round. Major investors include Bank Alfalah Limited and Lucky Investments Limited. They invested at a 10 percent premium to the floor price. The shares are priced at a price to earnings ratio of 5.2 times. This level shows a discount compared to the wider oil marketing sector. Therefore, the offer may attract value focused investors.
Expansion Plans After Listing
The company will use the IPO funds to expand operations. It plans to increase fuel stations, tankers, and storage capacity. In addition, the move supports long-term growth goals. Sitara aims to build a 30,000-ton oil storage terminal in Faisalabad. This facility will help it apply for an oil marketing license. The company targets this milestone by FY2028. Management also plans to open at least 47 new fuel stations. It will add 50 more tankers to the transport fleet. As a result, distribution capacity will rise across key markets.
Company Background and Market Context
Sitara Petroleum started operations in 2012. It works closely with Gas & Oil Pakistan Limited. This partner is the country’s second-largest fuel retailer by volume and is backed by Saudi Aramco. The firm currently runs 61 fuel stations, mainly in Punjab. It also manages a fleet of 320 oil tankers. Therefore, the company already holds a strong logistics base. Arif Habib Limited is managing the listing. Its leadership says market conditions remain favorable. The ongoing rally continues to support new public offerings.
