Servis group tops $1 billion valuation as SLM hits upper circuit on PSX debut

Service Long March Tyres Limited (SLM) made a strong debut on the Pakistan Stock Exchange (PSX) on Monday, with its share price jumping the maximum allowed 10%, helping parent Servis Group's market capitalisation exceed $1 billion.

The newly listed tyre manufacturer closed at Rs21.95 per share, up Rs2 or 10.03% from its strike price of Rs19.95, after remaining locked at the upper circuit throughout the trading session. More than 620,000 shares were traded during the day.

Addressing a gong ceremony held to mark the listing, SLM Chief Executive Officer Omar Saeed said the group's combined market value had crossed the $1 billion threshold. He noted that SLM's standalone valuation had risen above $600 million, while Service Industries and Service Global contributed to the group's overall market capitalisation.

The listing follows the company's successful IPO in May 2026, through which it raised Rs7.78 billion by offering 389.74 million shares to investors via book building and the public subscription process.

Backed by the fresh capital, SLM is accelerating expansion plans aimed at entering Pakistan's passenger vehicle tyre market. The company is setting up a new radial tyre production line for cars and SUVs with an investment of $120 million, in addition to approximately $300 million already invested in the project.

Commercial operations at the new facility are expected to begin by December 2027, with annual production capacity projected at two million passenger car tyres.

SLM currently commands around 60% of Pakistan's truck and bus radial tyre market and exports nearly 40% of its total output. Its export destinations include the United States and Brazil, while shipments to Poland are expected to commence within the next two months.

The company generated export earnings of around $70 million in FY26 and is targeting $100 million in exports during FY27.

Saeed said the company remains competitive against regional manufacturers in Thailand, Cambodia and India, attributing its position to productive labour and lower energy costs supported by renewable sources such as wind and solar power.