KARACHI: Service Long March Tyres IPO has received approval from the Securities and Exchange Commission of Pakistan, paving the way for a Rs7.8 billion listing that is set to attract strong investor interest. The offering, which includes 389.7 million shares through the book-building process, marks one of the most significant industrial IPOs in Pakistan this fiscal year.
Service Long March Tyres IPO: Key Details for Investors
Of the total offering, 75% goes to institutional investors and high-net-worth individuals through the book-building process. The remaining 25% flows to retail investors at the final strike price. This split is standard for large-scale Pakistani IPOs but takes on added significance here, given SLM’s size and the scale of its expansion ambitions.
The SECP advised all potential investors to study the company’s prospectus carefully prior to making any investment. The authority added that continuous listing activity is an indicator of increasing confidence of businesses in capital markets, and therefore this is regarded as a positive development by the authority.
What SLM Actually Does and Where it is Heading
SLM is not a newcomer. The company launched its business operations in March 2022 at its manufacturing site in SITE Nooriabad, Sindh, which is a 50-acre manufacturing unit within a special economic zone. It became a leading firm for manufacturing all-steel radial tyres for trucks and buses in Pakistan, phasing out imported products. It is also growing its export portfolio and expanding into new international destinations, such as the US and Brazil.
The company’s ownership structure reflects its cross-border DNA. Service Industries Limited holds a 32.09% equity stake, while its subsidiary, Service Global Footwear Limited, holds an additional 18.91%. China’s Chaoyang Long March Tyre Company Limited and Myco Corporation Pakistan complete the joint-venture picture, a partnership that has blended Pakistani distribution muscle with Chinese manufacturing technology since the company’s incorporation in 2020.
“SLM has successfully established itself as a credible local manufacturer in the commercial tyre segment. With this IPO, we are entering a new phase of growth, expanding into passenger car tyres and contributing to Pakistan’s industrial development through localisation and export expansion.” Omar Saeed, CEO, Service Long March Tyres Limited
The IPO proceeds between Rs 5.6 billion and Rs 7.8 billion — fund a very specific goal: building Pakistan’s first dedicated passenger car radial (PCR) tyre manufacturing facility. The total project cost stands at Rs 22.5 billion, with the remainder coming from long-term financing and internal cash flows. Commercial operations at the PCR plant will begin in January 2028, with initial annual capacity of 2 million tyres scaling to 2.5 million in FY2029 and 3 million by FY2030.
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The opportunity is real. Pakistan’s passenger car tyre market remains heavily import-dependent today, leaving a structural gap that domestic producers have not yet filled. SLM enters that gap with an existing factory, proven technology, and a Chinese manufacturing partner that ranks among the world’s largest tyre producers.
Market confidence holds despite KSE-100 headwinds
The timing of this IPO deserves context. The KSE-100 Index shed 14.54% during the US-Iran conflict earlier this year a sharp correction that rattled investor confidence. Yet domestic participation held firm. Local investors absorbed the volatility, and the primary market kept moving. Twelve IPOs in a single fiscal year, including a deal of SLM’s scale, tells a story of underlying market resilience that the headline index alone does not capture.
For retail investors considering participation, SLM’s three-year revenue growth trajectory, SEZ manufacturing advantages, and clear expansion roadmap offer a fundamentally different proposition from the index noise around it.
