KARACHI: Sitara Petroleum Service Limited (SPSL) has announced an initial public offering (IPO) to raise up to Rs4.8 billion, aiming to expand its fuel retail network and build storage infrastructure, according to its prospectus.
The company is offering 279.9 million ordinary shares, representing 16.66 per cent of its post-IPO paid-up capital. Of these, 168 million shares will be available to the public, while 111.9 million shares have already been placed through a pre-IPO transaction. SPSL has raised around Rs1.66 billion through this placement at Rs14.85 per share.
The book building process is scheduled for May 4-5, followed by public subscription on May 11-12. The IPO will be conducted through the book building method at a floor price of Rs13.5 per share, with an upper limit of Rs18.9. Around 75 per cent of the offer is reserved for institutional investors and high-net-worth individuals, while 25 per cent is allocated to retail investors.
Arif Habib Limited is acting as the lead manager and book runner. Proceeds will largely fund a new oil storage terminal, alongside expansion of retail outlets and tanker fleet. Chief Executive Officer Zaheer Baig said the IPO would support the company’s transition towards a more integrated oil marketing business.
