Service Long March Tyres Limited (SLM), a leading producer of truck and bus radial tyres in Pakistan, has formally announced its Initial Public Offering (IPO) at the Pakistan Stock Exchange.
The company prepares to expand into the passenger car radial (PCR) tyre market. The listing has received regulatory approval from the exchange.
The company plans to offer 389.738 million ordinary shares, equivalent to 5 per cent of its post-IPO paid-up capital. The shares will be issued through a book-building process with a base price of Rs14.25 per share, which may increase by up to 40 per cent to Rs19.95 depending on investor demand. Of the total offering, 75 per cent is reserved for institutional investors under book-building, while the remaining 25 per cent will be available to retail investors at the final strike price.
The book-building phase is scheduled for May, allowing institutional investors and high-net-worth individuals to place bids within the specified price range. Based on demand, the strike price will be determined before the public subscription phase begins.
Analysts anticipate strong investor interest, citing SLM’s growth trajectory, export presence, and expansion strategy, making the book-building stage a crucial part of the IPO process. Arif Habib Limited is serving as the consultant and lead manager for the issue.
The IPO is expected to raise Rs7.8 billion, which will be utilised to support SLM’s entry into the passenger car tyre segment. This move is aimed at reducing reliance on imported tyres and strengthening domestic manufacturing capacity.
As part of its expansion, SLM intends to establish a dedicated PCR tyre production facility, with operations targeted to begin in January 2028. The plant will initially produce around 2 million tyres annually, with capacity projected to rise 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 largely dependent on imports, offering significant potential for local manufacturers. By leveraging its technical expertise and partnerships, SLM aims to replicate its success in the truck and bus radial segment within the passenger car category for both local and export markets.
Founded in 2020 as a joint venture between Service Industries Limited, China’s Chaoyang Long March Tyre Company Limited, and Myco Corporation Pakistan, SLM began commercial operations in March 2022. Its manufacturing facility is located in SITE Nooriabad, Sindh, spread across approximately 50 acres within a Special Economic Zone.
Since launching operations, the company has established itself in Pakistan’s commercial tyre sector by providing locally produced alternatives to imported tyres, while also expanding its exports to markets such as the United States and Brazil.
SLM has also posted strong financial growth, with revenue and profitability increasing significantly over the past three years, supported by higher production volumes, expanded capacity, and broader market reach.
Commenting on the IPO, SLM Chief Executive Officer Omar Saeed described the offering as a key milestone in the company’s growth journey, adding that it would enable expansion into the passenger car tyre segment while contributing to industrial development and exports.
Meanwhile, Shahid Ali Habib said the transaction reflects the increasing depth of Pakistan’s capital markets, offering investors access to a high-growth manufacturing business with strong scaling and export potential.
Following the book-building stage, the retail portion of the IPO will be opened through digital platforms, including the PSX e-IPO system and the Central Depository Company’s centralised platform, allowing wider participation from individual investors.
