The country's largest refiner Indian Oil Corp is planning an initial public offer of its Sri Lankan subsidiary Lanka IOC by June this year to raise between $20-25 million.

"We are considering offering up to 24 per cent of equity in Lanka IOC to involve local population in our operation in the island nation," a senior IOC official said.

IOC has invited bids from Citigroup Inc and Deutsche Bank AG to give advice on the IPO.

Besides being listed on the Colombo stock exchange, Lanka IOC, which currently owns close to 150 petrol stations and one-third of fuel storage and pipeline network in the island nation, may also be listed on a couple of bourses in India.

"To make the IPO attractive, we may also offer a part of the equity to Indian investors," the official said adding no decision on the public offering has so far been taken.

"The timing, offer size and price of the IPO will be decided in consultation with the advisor," he said.

IOC, last year, bought 100 petrol stations from Sri Lankan national oil company Ceylon Petroleum Corp for 75 million dollars. It will also additionally acquire 150 franchise petrol stations to take the total number of outlets to 250.

"We already have close to 150 outlets on ground," the official said adding Lanka IOC plans to use the sale proceeds to expand locally.

Lanka IOC, which has an equity base of $40 million, has begun negotiations with CPC for entering into ATF business by setting up a ATF depot at the Colombo airport.

IOC also plans to enter bulk supply business in Sri Lanka and introduce auto-LPG at select retail outlets, besides exploring marketing of 'Indane' cooking gas among domestic consumers in the island nation.

"We have taken over the one million tonnes capacity China Bay Tankfarm at Trincomalee on a 35-year lease as part of plan to develop petroleum product storage facilities there," the company official said.

IOC entered Sri Lanka in 2002 with a term contract to export 30,000 tonnes of diesel and 10,000 tonnes of Aviation Turbine Fuel a month to that country.