KARACHI: A Pakistan-China joint tire manufacturer, Service Long March (SLM) Tyres announced on Wednesday that it has received approval from the Pakistan Stock Exchange (PSX) for its initial public offering (IPO) of 389.738 million shares, saying it seeks to raise Rs7.8 billion ($28.6 million) for expansion into passenger car tire production.
SLM Tyres was incorporated in 2020 as a joint venture between Pakistan’s Service Industries Limited, China’s Chaoyang Long March Tyre Company Limited, and Myco Corporation Pakistan. It manufactures truck and bus radial tires, primarily for heavy commercial vehicles, using Chinese technology combined with local production facilities in Pakistan.
SLM Tyres said it plans to establish a Passenger Car Radial (PCR) manufacturing facility, with commercial operations expected to begin in January 2028. The facility will have an initial annual production capacity of two million tires, which is projected to increase to 2.5 million units in FY2029 and three million units by FY2030.
“SLM has successfully established itself as a credible local manufacturer in the commercial tire segment,” the company quoted Chief Executive Officer Omar Saeed as saying.
“With this IPO, we are entering a new phase of growth, expanding into passenger car tires and contributing to Pakistan’s industrial development through localization and export expansion.”
The shares on offer will represent five percent of the company’s post-IPO paid-up capital and will be issued at a floor price of Rs 14.25 per share, SLM Tyres said. It added that the price may increase by up to 40 percent and reach Rs19.95 per share, depending on investor demand.
The statement said 75 percent of the total offer will be allocated to institutional investors through book-building, while the remaining 25 percent will be offered to retail investors at the strike price.
The book-building phase, a process in which the company and its investment bankers determine the price at which shares will be offered to the public, will take place in May, during which investors will be able to place their bids.
The move will help SLM tires reduce Pakistan’s reliance on imported tires and strengthen local industrial capacity, it said.
“This offering provides investors access to a high-growth manufacturing platform that is already demonstrating strong scale-up and export capability,” the statement quoted Arif Habib Limited CEO Shahid Ali Habib as saying.
“The IPO also highlights renewed confidence in Pakistan’s equity markets, where industrial and export-oriented businesses are increasingly turning to capital markets to fund expansion.”
