Sitara Petroleum Service Limited

Description of Transaction:

• Arif Habib Limited acted as the Lead Consultant to the Issue (CTI) for the IPO of Sitara Petroleum Service Limited, successfully raising PKR 4,837 million through Pre-IPO and IPO.
• PKR 1,661 million was raised through the Pre-IPO placement, where shares were offered to institutional investors, mutual funds, and HNWIs at a 10% premium to the IPO floor price.
• The book-building portion of the IPO had a floor offer size of PKR 1,701 million and attracted aggregate demand of PKR 11,737 million, resulting in an oversubscription of approximately 7.0x. The retail portion received 23,757 applications and was oversubscribed by approximately 3.4x. In total, approximately 25,000 applications were received across both the book-building and retail portion.
• The final strike price was discovered at PKR 18.90 per share.
• This transaction represented the first IPO of a fuel retail management company in Pakistan.

About the Issuer:

• Sitara Petroleum Service Limited is engaged in the trading, distribution, and retail sale of diesel and petrol as an authorized dealer of Gas & Oil Pakistan (GO), alongside providing fuel carriage and transportation services.
• Headquartered in Lahore, SPSL has established a nationwide presence with a fleet of over 300 lorries and a network of more than 60 fuel stations across Pakistan. The company is the largest dealer of GO in terms of both retail outlet count and sales volume.
• Through the IPO proceeds, SPSL intends to develop a 30,000 MT storage terminal in Gatti, Faisalabad, expand its retail footprint through the addition of new fuel stations, and strengthen its logistics capabilities through the acquisition of additional oil tankers.