Service Long March Tyres sets PSX record as IPO fully subscribed in 5 seconds

Service Long March Tyres Limited set a new record at the Pakistan Stock Exchange (PSX) after its Initial Public Offering (IPO) was fully subscribed within five seconds during the book-building phase, according to Arif Habib Limited, the lead manager to the issue.

Arif Habib Limited described the transaction as Pakistan’s largest IPO and said the investor response reflected confidence in Pakistan, its capital markets, the Service Group, Pakistan-China partnership and the company’s growth outlook.

The book-building process opened on May 18 and will continue until May 19, 2026, for institutional investors and high-net-worth individuals.

The IPO is being offered within a price band of ₨14.25 to ₨19.95 per share and could raise up to ₨7.8 billion at the upper end of the range.

The company plans to utilise the proceeds to expand into the passenger car radial tyre segment, which remains heavily dependent on imports.

Service Long March Tyres currently operates in Pakistan’s truck and bus radial tyre market and is regarded as a major player in the country’s tyre manufacturing sector.

Under its expansion strategy, the company plans to establish a dedicated passenger car tyre manufacturing facility, with commercial operations expected to begin in January 2028.

The proposed plant will initially produce around 2 million tyres annually, with capacity projected to increase to 2.5 million units in FY2029 and 3 million units by FY2030.

SLM management said the company is being valued at around $550 million for the IPO and aims to achieve a valuation of $1 billion within two years through capacity expansion, export growth and entry into new markets.

Industry observers said the expansion into passenger car tyres could support import substitution, foreign exchange savings and local industrial development.