Service Long March Tyres gets PSX approval for Rs7.8 billion IPO

Service Long March Tyres Ltd has received approval from the Pakistan Stock Exchange (PSX) to launch an initial public offering (IPO) aimed at raising up to Rs7.8 billion to support its expansion into the passenger car tyre segment.

Arif Habib Limited is acting as adviser and lead manager for the IPO.

The company will offer 389.7 million shares, representing 5.0 per cent of its post-IPO capital, through a book-building process scheduled to begin in May. The floor price has been set at Rs14.25 per share, with a maximum price of Rs19.95 depending on investor demand.

Under the offering structure, 75 per cent of the shares 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.

Following the book-building phase, shares allocated to retail investors will be offered through electronic IPO platforms operated by the Pakistan Stock Exchange and the Central Depository Company.

The company said proceeds from the offering will be used to establish a passenger car radial tyre manufacturing facility, with the aim of reducing reliance on imports and increasing local production capacity.

The planned facility is expected to start operations in January 2028 with an initial annual capacity of 2 million tyres, which is projected to increase to 3 million tyres by FY2030.

Founded in 2020 as a joint venture between Service Industries Ltd, China’s Chaoyang Long March Tyre Co and Myco Corporation Pakistan, the company began commercial production in 2022 and operates a manufacturing plant in Nooriabad, Sindh.