KARACHI: Pakistan-China joint venture Service Long March (SLM) Tyres raised Rs7.78 billion ($28 million) in its Initial Public Offering (IPO) this week, the Pakistan Stock Exchange (PSX) said, describing it as the largest private sector IPO in the country’s history.
The move comes after SLM Tyres announced in April that it received approval from the PSX for its IPO of 389.738 million shares. SLM Tyres was established in 2020 as a joint venture between Service Industries Limited (Pakistan), Chaoyang Long March Tyre Company Limited (China), and Myco Corporation (Pakistan).
The company manufactures truck and bus radial tires for heavy commercial vehicles, combining advanced Chinese technology with local manufacturing capabilities in Pakistan.
At the IPO ceremony on Monday, Finance Minister Muhammad Aurangzeb stressed the need to boost private sector participation in capital markets to drive economic growth, industrial development, and investment mobilization.
“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 was quoted as saying by the PSX.
“Service Long March is already among the most profitable tire companies globally, proving that Pakistan can deliver industrial growth with an export-led model,” he added.
The SLM IPO attracted participation from institutional and retail investors including banks, mutual funds, insurers, pension funds, brokers, high-net-worth individuals, and foreign investors, the PSX said.
The IPO floor price was set at Rs14.25 ($0.0513) per share, with strong demand during book building driving the strike price higher to Rs19.95 ($0.0718), it added.
“The transaction raised PKR 7.78 billion, making it the largest IPO ever undertaken in Pakistan,” the PSX said.
It highlighted that five percent of the shares were reallocated from the book-building tranche to the retail tranche in line with regulations.
SLM Tyres Chief Executive Officer Omar Saeed said he was deeply grateful to investors for the unprecedented interest shown in the IPO.
“Pakistan is now on the global map as a tire exporting country, and we intend to keep this journey going,” he was quoted as saying.
“SLM will enter new markets every year, and with the new capital coming in from this IPO, we will advance Pakistan’s name not only in truck tires but also in passenger car tires.”
