Business Recorder
In its initial public offering (IPO), Service Long March Tyres Limited (SLM) has raised Rs5.83 billion by selling 292.3 million shares at Rs19.95 per share in its two-day book-building process at the Pakistan Stock Exchange (PSX). On the first day on Monday, the IPO was fully subscribed within the first 5 seconds of opening, marking one of the fastest-ever book building transactions in the history of the PSX. The company sold its shares to institutional and high-net worth individual investors in the two-day Dutch bidding (book building) process culminated on Tuesday. SLM’s share price soared 40% to the maximum allowed limit of Rs19.95 per share from the bid open (floor) price of Rs14.25 per share. The company is scheduled to sell another 97.4 million shares to retail investors at the strike price of Rs19.95 per share on June 3-4, 2026 at PSX. This will take the total raise by SLM to Rs7.77 billion by selling 389.7 million shares. “Service Long March Tyres’ IPO is the largest transaction in the history of the Pakistan Stock Exchange, generating investor interest of approximately Rs70 billion ($250 million) and raising Rs 7.77 billion, which is also the highest amount ever raised by any IPO at PSX,” Arif Habib Limited’s (AHL) - the lead manager and book runner for the IPO – CEO Shahid Ali Habib said in a press statement. The statement added SLM’s IPO book building witnessed historic investor participation which was oversubscribed 16.7 times. 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. The company has emerged as a key player in Pakistan’s automotive manufacturing landscape since commencing operations, focusing primarily on the truck and bus radial tyre market, which plays a critical role in supporting the country’s transportation, logistics, trade and industrial sectors. Under its expansion strategy, SLM plans to establish a dedicated passenger car tyre production facility, with commercial operations expected to commence in January 2028. The proposed plant will initially have an annual production capacity of around 2 million tyres, which the company aims to expand to 2.5 million units in FY2029 and 3 million units by FY2030.
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