KARACHI: Sitara Petroleum Service Limited closed its Initial Public Offering (IPO), receiving an overwhelming response from investors during both the book building and public subscription phases.
The IPO witnessed the highest ever participation in Pakistan’s IPO history with approximately 25,000 applications received across the book building and retail segments.
Company raised PKR 4.8 billion. The book building portion, comprising 126 million ordinary shares, was fully subscribed within just 8 minutes and was oversubscribed by 7 times. The retail portion comprising 42 million ordinary shares was oversubscribed by 3.4 times.
This overwhelming response highlights the growing strength, depth, and investor participation in Pakistan’s equity capital market, PSX said in a statement.
The pre-IPO component consisted of 111,914,000 ordinary shares representing 6.66% of the post-IPO paid-up capital and successfully raised PKR 1.66 billion at PKR 14.85 per share. The IPO component consisted of 168,000,000 ordinary shares representing 10.00% of the post-IPO paid-up capital.
The floor price for the IPO was set at PKR 13.50 per share and the strike price was discovered at PKR 18.90 per share hitting the upper price band. Consequently, the IPO transaction size stood at PKR 3.17 billion at the strike price, compared to PKR 2.27 billion at the floor price.
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Arif Habib Limited and Integrated Equities Limited acted as the Joint Lead Managers to the Issue and played a pivotal role in successfully executing the IPO process.
