Service Long March Tyres Limited, one of Pakistan’s leading manufacturers of truck and bus radial tyres, has announced its Initial Public Offering (IPO) at the Pakistan Stock Exchange, marking a significant milestone as the company moves into its next phase of growth with entry into the passenger car radial (PCR) tyre segment. The company has received approval from PSX.
The company is offering 389.738 million ordinary shares, representing 5 percent of its post-IPO paid-up capital, through the book-building method at a floor price of Rs14.25 per share that can rise upto 40% to reach Rs. 19.95 per share subject to interest by investors. Of the total offer, 75 percent comprises the book-building portion for institutional investors, while the remaining 25 percent will be offered to retail investors at the strike price.
The book-building phase of the IPO is scheduled to take place in May, during which institutional investors and high-net-worth individuals will be able to submit bids within the announced price band. The process will determine the strike price based on demand, following which the offer will move to the general public subscription phase.
Market participants expect strong interest given the company’s growth trajectory, export footprint and expansion plans, positioning the book-building round as a key milestone in the overall offering process.
Arif Habib Limited is acting as Consultant to the Issue and Lead Manager.
The IPO proceeds, estimated at upto 7.8 billion, will support the company’s planned expansion into passenger car radial tyre manufacturing, a move expected to reduce Pakistan’s reliance on imported tyres and strengthen local industrial capacity.
SLM plans to establish a dedicated PCR manufacturing facility, with commercial operations expected to commence in January 2028. The facility will have an initial production capacity of approximately 2 million tyres annually, projected to increase to 2.5 million units in FY2029 and 3 million units by FY2030.
The expansion comes at a time when Pakistan’s passenger vehicle tyre market remains heavily import-dependent, presenting a strong opportunity for local manufacturing. By leveraging its existing manufacturing expertise and technology partnerships, SLM aims to replicate its success in the truck and bus radial (TBR) segment within the passenger vehicle category for domestic and export markets.
Incorporated in 2020 as a joint venture between Service Industries Limited, China’s Chaoyang Long March Tyre Company Limited, and Myco Corporation Pakistan, SLM commenced commercial operations in March 2022. The company operates a manufacturing facility at SITE Nooriabad, Sindh, spread over approximately 50 acres of SEZ land.
Since inception, SLM has emerged as a key player in Pakistan’s commercial tyre segment, offering locally manufactured alternatives to imported truck and bus radial tyres, while also building a growing export footprint across international markets including the United States and Brazil.
Financially, SLM has demonstrated strong growth momentum, with revenues and profitability rising sharply over the past three years on the back of increasing volumes, enhancement of capacity and expanding market reach.
Commenting on the IPO, Omar Saeed, Chief Executive Officer of Service Long March Tyres Limited, said the offering marks a pivotal step in the company’s evolution.
SLM has successfully established itself as a credible local manufacturer in the commercial tyre segment. With this IPO, we are entering a new phase of growth, expanding into passenger car tyres and contributing to Pakistan’s industrial development through localization and export expansion, he said.
Shahid Ali Habib, Chief Executive Officer of Arif Habib Limited, said the transaction reflects growing depth and maturity in Pakistan’s capital markets.
This offering provides investors access to a high-growth manufacturing platform that is already demonstrating strong scale-up and export capability. The IPO also highlights renewed confidence in Pakistan’s equity markets, where industrial and export-oriented businesses are increasingly turning to capital markets to fund expansion, he said.
Following the book-building process, the retail portion of the IPO will be made available through electronic platforms, including PSX’s e-IPO system and CDC’s centralized e-IPO platform, enabling broader investor participation.
