Business Recorder
Service Long March Tyres Limited (SLM) is moving ahead with its initial public offering (IPO) to raise Rs7.8 billion, after securing approval from the Pakistan Stock Exchange, with book-building for institutional investors scheduled to commence in May. The company is offering 389.7 million ordinary shares, which represents 5% of its post-IPO paid-up capital, 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% comprises the book-building portion for institutional investors, while the remaining 25% will be offered to retail investors at the strike price. As per a statement, 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. Service Long March Tyres plans $28mn IPO at PSX 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 a consultant on the issue and lead manager. The IPO proceeds, estimated at up to Rs7.8 billion, would support the company’s planned expansion into passenger car radial tyre manufacturing. As per the statement, 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 two million tyres annually, projected to increase to 2.5 million units in FY2029 and 3 million units by FY2030. 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. 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. “With this IPO, we are entering a new phase of growth, expanding into passenger car tyres and contributing to Pakistan’s industrial development through localisation 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. “The IPO 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.
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