SLM Shares Surge on Debut, Servis Group Joins $1bn Club

KARACHI: Service Long March Tyres Limited (SLM) shares surged to the maximum allowable daily gain on their first trading day at the Pakistan Stock Exchange (PSX) on Monday, pushing the combined market capitalisation of Servis Group past the $1 billion mark.

SLM shares opened at Rs21.95, a 10.03% jump from the issue price and held that level throughout the session. Investors exchanged 620,940 shares on the day, according to PSX trading data.

SLM Standalone Valuation Tops $600mn

SLM Chief Executive Officer Omar Saeed announced the milestone at a gong ceremony at the PSX, convened to mark the company's formal listing. He told reporters on the sidelines that SLM's own market valuation crossed $600 million on debut, with Service Industries and Service Global the two other listed Servis Group entities contributing the remainder to push the group past the billion-dollar threshold.

Also Read: Service Long March Tyres IPO Approved — SECP Clears Rs7.8bn SLM Listing

The truck and bus radial tyre manufacturer raised Rs7.78 billion through its May 2026 initial public offering, selling 389.74 million shares at a strike price of Rs19.95 per share via book-building and a public subscription.

$120mn Expansion Targets Car Tyre Segment

Saeed said the company now plans to channel IPO proceeds into a new production line targeting passenger car tyres covering vehicles from small hatchbacks to full-size SUVs. The expanded facility carries an installed capacity of two million car tyres annually and targets commercial production by December 2027.

"We are investing another $120 million into the new plant. Earlier, we already invested $300 million in the project," Saeed said.

Exports on Track to Hit $100mn in FY27

Saeed claimed SLM commands a 60% market share in Pakistan's truck and bus tyre segment and currently exports roughly 40% of total output. Key export destinations include the United States and Brazil, with Poland set to come online within two months.

The company recorded $70 million in export revenue in FY26 and targets $100 million for FY27.
Saeed attributed SLM's regional competitiveness to productive labour costs and access to renewable energy including wind and solar that keeps input costs low against rivals in Cambodia, Thailand, and India.

"SLM remains a competitive exporter. It exports tyres to category A markets worldwide," he said.