KARACHI: The initial public offering (IPO) of Service Long March Tyres Ltd attracted bids worth about Rs69.4 billion during the book-building process, making it one of the most heavily subscribed offerings in the history of the Pakistan Stock Exchange (PSX).
The two-day book-building exercise was oversubscribed by 16.7 times, according to details released on Tuesday. The IPO achieved its maximum fundraising target of Rs7.77 billion, with bids reaching the cap price, representing a 40 per cent premium to the floor price.
Market participants said the offering drew strong interest from institutional investors and high-net-worth individuals, reflecting investor appetite for export-oriented manufacturing companies.
Service Long March Tyres is a joint venture between Pakistan’s Service Industries Ltd and China’s Long March Tyres.
The transaction is among the largest industrial-sector IPOs in Pakistan in recent years and comes amid efforts to revive activity in the country’s capital markets, the company said in a statement.
