Sitara Petroleum plans Rs3.2bn IPO

February 11, 2026 (MLN): Sitara Petroleum Services Ltd., a fuel station operator and transporter, is set to launch an initial public offering (IPO) next month, aiming to raise up to Rs3.2 billion ($11.4 million) to finance the expansion of its retail outlets, fleet and storage infrastructure.

Bloomberg reported the development, citing Shahid Ali Habib, CEO of Arif Habib Ltd., the lead manager and book runner for the transaction.

The transaction could rank as Pakistan’s second-largest listing in the past four years, based on data compiled by Bloomberg.

The offering came at a time when Pakistan’s equity market is witnessing a strong rally, with rising retail participation encouraging companies to return to capital markets.

The benchmark KSE-100 Index has surged more than 61% over the past year, marking the strongest performance in Asia.

Elevated valuations are creating favorable conditions for issuers seeking to tap the equity market.

Ahead of the public offer, Sitara raised Rs1.66 billion in a pre-IPO placement at a 10% premium to the floor price from institutional investors, including Bank Alfalah Ltd. and Lucky Investments Ltd.

The shares are being offered at a price-to-earnings ratio of 5.2x, which Shahid Ali Habib described as a “significant discount” compared to the average valuation of Pakistan’s oil marketing sector.

Established in 2012, Sitara Petroleum has a strategic affiliation with Gas & Oil Pakistan Ltd. (GO), the country’s second-largest fuel retailer by volume, backed by Saudi Aramco.

As the largest dealer of GO products, Sitara currently operates 61 fuel stations, primarily in Punjab, under the GO and Aramco brands. The company also manages a fleet of 320 oil tankers.

Proceeds from the IPO will be utilized to develop a 30,000-ton oil storage terminal in Gatti, Faisalabad — a move that will position the company to apply for an oil marketing license by FY2028.

Additionally, Sitara plans to invest in at least 47 new fuel stations and acquire 50 additional tankers to expand its logistics footprint.

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