SLM tyres IPO draws Rs69.4bn bids as book building closes 16.7 times oversubscribed

Service Long March Tyres Limited (SLM Tyres) attracted bids worth nearly Rs69.4 billion during its two-day IPO book building process, making it one of the most heavily subscribed industrial listings in Pakistan’s recent capital market history.

The offering was oversubscribed by 16.7 times, while the transaction successfully achieved its maximum fundraising target of Rs7.77 billion. The IPO also closed at the maximum cap price, reflecting a 40 per cent premium over the floor price.

Market participants described the response as unprecedented for Pakistan’s IPO market, with strong participation from institutional investors and high-net-worth individuals driven by confidence in the company’s growth outlook, export potential and manufacturing scale.

According to details, the IPO generated investor interest equivalent to around $250 million and recorded the highest-ever bids received for any IPO at the Pakistan Stock Exchange (PSX).

The transaction is being viewed as a major development for Pakistan’s manufacturing and capital markets, particularly for export-oriented industrial companies seeking equity financing through public listings.

Shahid Ali Habib, Chief Executive Officer of Arif Habib Limited, which acted as lead manager and book runner for the transaction, said the IPO marked a historic moment for the country’s equity market.

He said Service Long March Tyres’ IPO had become the largest transaction in PSX history in terms of investor interest and amount raised through an IPO.

He added that the response demonstrated growing investor appetite for companies with strong fundamentals, export capability, technological scale and long-term expansion potential.

The successful book building is also being seen as a significant milestone for Pakistan-China industrial collaboration in the manufacturing sector and a sign of improving investor confidence in export-led listings.