Key Points
- Offering reached cap price of Rs 18.90 ($o.o7) within 10 minutes, a record for Pakistan’s stock market
- Sale includes 279.9 million shares, representing 16.66 per cent of company’s capital
- Aims to raise about Rs 4.8 billion (around $17 million) for expansion
- Company aims to build network of over 100 retail outlets within two years
ISLAMABAD: Sitara Petroleum Service Limited’s share offering set a new benchmark in Pakistan’s capital market by reaching its maximum price within 10 minutes of opening, reflecting strong investor demand for energy-sector growth opportunities.
According to a company statement, the Initial Public Offering hit the cap price of Rs 18.90 shortly after book building began, marking the fastest such transaction in the history of Pakistan’s stock exchange.
The rapid price discovery highlights investor confidence in the company’s fuel retail and logistics operations, which support the country’s oil distribution network.
Offering size and use of funds
The offering comprises 279.9 million shares, representing 16.66 per cent of the company’s total capital. Proceeds will be used to expand Sitara Petroleum’s retail fuel station network and logistics fleet.
Expansion plans
The company plans to increase its footprint to more than 100 fuel stations over the next two years, focusing on high-traffic commercial routes. The expansion is expected to be financed through approximately Rs 4.8 billion (nearly $17 million) raised from the offering.
Market outlook
Arif Habib Limited, the lead manager for the transaction, said investor participation reflected confidence in the company’s growth trajectory.
Sitara Petroleum is expanding its presence in Pakistan’s downstream energy sector as both a fuel retailer and logistics provider to oil marketing companies, supported by a growing network of stations and tanker fleet.
Rising energy demand in Pakistan is expected to support volume growth, positioning the company to benefit from increased consumption and operational scale.
