KARACHI: Service Long March Tyres Ltd has received approval from the Pakistan Stock Exchange for an initial public offering to raise up to Rs7.8 billion as it expands into the passenger car tyre segment, a statement said.
The company, a manufacturer of truck and bus radial tyres, will offer 389.7 million shares, or 5.0 per cent of post-IPO capital, through a book-building process starting in May. The floor price has been set at Rs14.25 per share, with the potential to rise to Rs19.95 depending on investor demand.
Of the total issue, 75 per cent will be allocated to institutional investors and high-net-worth individuals, while the remaining 25 per cent will be offered to retail investors at the strike price determined through book-building.
Arif Habib Ltd is acting as adviser and lead manager to the issue.Proceeds from the IPO will fund the company’s expansion into passenger car radial tyre manufacturing, aimed at reducing reliance on imports and strengthening domestic production capacity. The planned facility is expected to begin operations in January 2028 with an initial annual capacity of 2 million tyres, rising to 3 million by FY2030.
Founded in 2020 as a joint venture between Service Industries Ltd, China’s Chaoyang Long March Tyre Co and Myco Corporation Pakistan, SLM began commercial production in 2022 and operates a manufacturing plant in Nooriabad, Sindh. After the book-building phase, shares allocated to retail investors will be offered via electronic IPO platforms operated by the Pakistan Stock Exchange (PSX) and Central Depository Company.
