Sitara Petroleum IPO Goes Public on PSX: Valuation Details & How to Buy Shares

Sitara Petroleum Services Ltd. plans a landmark public offering next month to fund a massive infrastructure shift. The company seeks Rs 3.2 billion to build a major storage terminal in Faisalabad and expand its retail footprint. This offering marks a significant moment for the Pakistan Stock Exchange energy sector.

As per Bloomberg reports, Sitara Petroleum Services Ltd. aims for a March 2026 debut on the Pakistan Stock Exchange. The fuel station operator targets a capital raise of Rs 3.2 billion ($11.4 million). This transaction represents the second-largest listing in Pakistan over the last four years. Arif Habib Ltd. serves as the lead manager and book runner for the Sitara Petroleum IPO.

The company will utilize the proceeds to transform its operational scale. A primary goal involves constructing a 30,000-tonne oil storage terminal in Gatti, Faisalabad. This facility allows the firm to apply for a formal Oil Marketing Company (OMC) license by 2028.

Current expansion plans include:

• Adding 47 new fuel stations to the existing 61-outlet network.
• Purchasing 50 additional tankers to strengthen the logistics fleet.
• Scaling the current 320-tanker fleet to meet rising demand.

Sitara Petroleum IPO Market Performance and Valuation

The Sitara Petroleum IPO comes at a time when the KSE-100 index has been up by 61% last year. Good market values give new issuers a good opportunity. Pre-IPO placements have already earned the company Rs 1.66 billion. The institutional investors, such as Bank Alfalah and Lucky Investments, attended at 10 percent of a premium to the floor price.

According to analysts, the shares have a price-to-earnings ratio of 5.2x. This is a valuation that is a discount on the larger market of the oil marketing industry. Sitara now runs stations in the GO brand and Aramco one with a formidable presence in Punjab.

How to Buy Shares of The Sitara Petroleum IPO?

The individual investors are allowed to participate via PSX e-IPO. In order to purchase shares, one should do the following steps:

1. Open a Brokerage Account: Contact a licensed TREC holder or use the PSX Sahulat Account for simplified entry.
2. Register for e-IPO: Use the Central Depository Company (CDC) or PSX e-IPO portal to link your bank account.
3. Submit Application: During the public subscription days in March, submit your bid via digital banking channels or the e-IPO website.

The offering is expected to be Shariah-compliant, broadening its appeal to retail investors.