Service Long March Tyres Limited (SLM) has filed its prospectus with the Pakistan Stock Exchange, seeking to raise between PKR 5.6 billion and PKR 7.8 billion through an initial public offering. The offering comprises 389.7 million ordinary shares at a floor price of PKR 14.25 per share , representing a 5% stake in the company following the listing.
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The IPO proceeds will be directed toward the development of a passenger car radial (PCR) tyre manufacturing project , with an estimated total cost of PKR 22.5 billion. The remaining funding requirement will be financed through a combination of long-term borrowing and internal cash generation.
| Aspect | Detail |
|---|---|
| IPO Size | PKR 5.6bn – PKR 7.8bn |
| Shares Offered | 389.7 million ordinary shares |
| Floor Price | PKR 14.25 per share |
| Post-IPO Stake | 5% |
| Project | Passenger car radial (PCR) tyre manufacturing |
| Total Project Cost | PKR 22.5 billion |
Market Context
The planned expansion comes as Pakistan’s tyre market shows increasing demand for locally manufactured radial tyres, a segment historically dominated by imports. The company’s investment in PCR tyre manufacturing aims to capture this growing demand while reducing Pakistan’s dependence on imported tyres.
Recent Investment Announcement
The IPO filing follows the company’s recent announcement of an additional $120 million investment in Pakistan, aimed at increasing exports from $70 million by June 2026 to over $100 million in the following financial year. The company’s Nooriabad manufacturing facility employs approximately 2,000 workers and incorporates renewable energy solutions.
About Service Long March Tyres
Service Long March Tyres Limited (SLM) is a leading tyre manufacturer in Pakistan, operating a modern manufacturing facility in Nooriabad. The company has emerged as a significant exporter, with Pakistan becoming the fifth-largest tyre exporter to the United States and the seventh-largest to Brazil.
