Service Long March Tyres Limited (SLM) has made history in Pakistan’s capital markets by successfully completing the country’s largest-ever private sector Initial Public Offering (IPO), raising a record Rs7.78 billion. The listing on the Pakistan Stock Exchange (PSX) drew Rs85 billion (USD 300 million) in total investor interest across approximately 35,565 institutional and retail applications.
Bidding reached a frenzy during the institutional book-building phase, which was fully subscribed within just five seconds and closed 16.7 times oversubscribed, while overwhelming retail demand led to a 7.6 times oversubscription. This massive appetite pushed the final strike price to Rs19.95 per share from a floor price of Rs14.25, propelling SLM’s post-listing market capitalisation to Rs155 billion (USD 556 million) – making it the largest private sector listing by market value in Pakistan’s history.
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| IPO Metric | Achievement |
|---|---|
| Total Raised | Rs7.78 billion (record private sector IPO) |
| Total Investor Interest | Rs85 billion (USD 300 million) |
| Applications Received | ~35,565 |
| Institutional Oversubscription | 16.7x (fully subscribed in 5 seconds) |
| Retail Oversubscription | 7.6x |
| Final Strike Price | Rs19.95 (vs floor Rs14.25) |
| Post-Listing Market Cap | Rs155 billion (USD 556 million) |
A Milestone for Pakistan-China Cooperation
Beyond its financial milestones, the debut marks a watershed moment for international cooperation as the first Pakistan-China joint venture to list on the PSX, serving as a model for the industrial phase of the China-Pakistan Economic Corridor (CPEC).
YOU Hang, Executive Vice President of the China Financial Futures Exchange and PSX Shareholder Director, noted that the blockbuster listing “demonstrates confidence in Pakistan–China cooperation” and will serve as a model for future Chinese enterprises looking to tap into Pakistan’s capital markets.
Government and Market Recognition
Commemorating the achievement at the PSX Gong Ceremony, Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, praised the company’s trajectory:
“The listing of SLM is a proud milestone, built during the peak of COVID with Chinese expertise and investment, and now on track to achieve USD 100 million in exports next year.”
The Minister added that the company is already among the most profitable tyre manufacturers globally.
PSX Managing Director & CEO Farrukh H. Sabzwari highlighted that the market has recently touched a Rs21 trillion market capitalisation, tracking double-digit IPO listings for the first time since the mid-2000s. Sabzwari also noted a major demographic shift, with the exchange recording over 563,000 unique investor numbers (UINs) this fiscal year, with Millennials and Gen Z heavily driving market participation.
Use of Proceeds
Backed by the Securities and Exchange Commission of Pakistan’s (SECP) commitment to expand the country’s investor base fivefold, SLM’s management, led by CEO Omar Saeed and lead manager Arif Habib Limited, announced that the newly raised capital will be used to enter new global markets annually and expand production from truck and bus radial tyres into passenger car tyres.
About Service Long March Tyres Limited
Service Long March Tyres Limited (SLM) is a leading tyre manufacturer in Pakistan, operating a modern manufacturing facility in Nooriabad. The company is a joint venture combining local expertise with Chinese technology and partnership, and has emerged as a significant exporter with Pakistan becoming the fifth-largest tyre exporter to the United States and the seventh-largest to Brazil.
