Key Points
- Pakistan-based Sitara Petroleum IPO approved by regulator to raise about $17 million
- Securities regulator clears two listings, including the country’s first SPAC
- Total IPOs in the current fiscal year reach 11, signalling market resilience
- Offering targets to institutional, high-net-worth, and retail investors
ISLAMABAD: Pakistan-based Sitara Petroleum has moved ahead with plans to raise approximately $17 million through an initial public offering (IPO) for the local market, as the corporate regulator approves the transaction.
The development reflects steady deal flow in the country’s capital markets despite regional uncertainty.
The Securities and Exchange Commission of Pakistan (SECP) on Wednesday approved the IPO of Petroleum Services along with LSE SPAC-I, both slated for listing on the Pakistan Stock Exchange.
According to the regulator, the consistent pipeline of public capital offerings reflects market resilience and sustained investor confidence.
Sitara Petroleum Service Limited, engaged in fuel trading, retail and carriage services, will offer 168 million ordinary shares through the book-building method.
The offering represents 16.66 per cent of its post-IPO paid-up capital. Of the total shares, 75 per cent will be allocated to institutional investors and high-net-worth individuals, with the remaining 25 per cent reserved for retail investors.
The company operates as a dealer of Gas and Oil Pakistan, would seek to expand operations and strengthen working capital, positioning itself within the downstream energy segment that faces both structural demand and logistical bottlenecks.
The SECP’s approval also covers LSE SPAC-I, Pakistan’s first special purpose acquisition company under the public offering regime.
The entity aims to raise capital for mergers or acquisitions within three years and plans to acquire a 19.04 per cent stake in Ningbo Green Light Energy Limited. Its IPO consists of 5 million shares offered on a ‘fixed price method’.
With these approvals, the total number of IPOs in Pakistan during the fiscal year 2025–26 has reached 11, according to the regulator, highlighting a gradual revival in equity market activity.
The trend indicates that more companies are turning to public markets to finance growth, creating new opportunities for both domestic and international investors.
Market participants say the Sitara Petroleum offering provides global investors a lens into Pakistan’s evolving capital market. Pakistan’s regulatory backing and continued listings are helping offset concerns stemming from macroeconomic pressures and geopolitical tensions.
The commission has allowed the issuance and publication of prospectuses for both IPOs, paving the way for their public launch. It has advised investors to carefully review disclosures before making investment decisions.
Analysts note that risks remain, including currency volatility, regulatory shifts and global energy price movements. However, a steady IPO pipeline and regulatory support could strengthen confidence in Pakistan’s equity markets if economic stability continues to improve
