KARACHI: Service Long March Tyres Limited (SLM) is set to commence the book-building phase of its Initial Public Offering (IPO) on May 18, as the company seeks to raise funds for expansion into the passenger car tyre segment and strengthen its position in Pakistan’s manufacturing and export sectors.
According to company details, the book-building process will remain open for two days from May 18 to May 19, 2026, allowing institutional investors and high-net-worth individuals to participate in the offering through a competitive bidding mechanism.
The IPO is being offered within a price band of Rs14.25 to Rs19.95 per share, positioning the transaction among the notable public offerings in Pakistan’s industrial and manufacturing sector in recent years.
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The company is expected to raise up to Rs7.8 billion at the upper end of the price band, with proceeds earmarked primarily to finance SLM’s planned entry into the passenger car radial (PCR) tyre segment, an area currently dominated by imported tyres.
Service Long March Tyres has emerged as a key player in Pakistan’s automotive manufacturing landscape since commencing operations, focusing primarily on the truck and bus radial tyre market, which plays a critical role in supporting the country’s transportation, logistics, trade and industrial sectors.
Commenting on the offering, Chief Executive Officer of Arif Habib Limited, Shahid Ali Habib, whose firm is acting as the lead manager to the issue, said the IPO presents a significant opportunity for investors seeking exposure to Pakistan’s manufacturing-led and export-oriented growth story. “Service Long March Tyres is a compelling IPO story backed by industrial scale, export potential, import substitution, and a strong growth outlook.”
Industry observers view the offering as strategically important, particularly given Pakistan’s heavy dependence on imported passenger vehicle tyres. The planned expansion into the PCR segment is expected to contribute toward import substitution, foreign exchange savings and local industrial development.
Under its expansion strategy, SLM plans to establish a dedicated passenger car tyre production facility, with commercial operations expected to commence in January 2028. The proposed plant will initially have an annual production capacity of around 2 million tyres, which the company aims to expand to 2.5 million units in FY2029 and 3 million units by FY2030.
SLM management indicated that the company is being valued at approximately USD550 million for the IPO, while aiming to achieve a USD1 billion valuation within the next two years through capacity enhancement, stronger exports and expansion into new product segments and markets.
The IPO also comes at a time when Pakistan’s equity market is witnessing renewed investor interest in manufacturing and industrial companies linked to export growth and localisation opportunities.
Copyright Business Recorder, 2026
