SLM Tyres Unveils Record $28M IPO in Pakistan’s Premier Private Market
KARACHI – Pakistan-China partnership Service Long March (SLM) Tyres recently completed a landmark Initial Public Offering (IPO), raising $28 million in a significant transaction on the Pakistan Stock Exchange (PSX). This marks the largest private sector IPO in the country’s recent history.
The company’s successful listing follows its April approval for a major equity offering of 389.738 million shares. SLM Tyres was formed in 2020 through a strategic collaboration between Service Industries Limited (Pakistan), Chaoyang Long March Tyre Company Limited (China), and Myco Corporation (Pakistan).
SLM Tyres specializes in producing high-quality truck and bus radial tires for heavy commercial vehicles, leveraging advanced Chinese technology with strong local manufacturing support in Pakistan.
The PSX highlighted that the listing underscores growing private sector involvement in capital markets, aiming to foster economic growth and industrial expansion. Finance Minister Muhammad Aurangzeb emphasized the importance of such initiatives to increase investment and job creation.
SLM Tyres’ IPO drew substantial participation from institutional and retail investors, including banks, mutual funds, insurers, pension funds, and foreign investors. The floor price was set at Rs14.25 per share, with a strong demand pushing the strike price higher.
Five percent of the shares were repurposed from the book-building allocation to retail distribution, aligning with regulatory standards. The transaction not only raises significant capital but also strengthens SLM’s position as a profitable and export-oriented tire manufacturer.
SLM Tyres CEO Omar Saeed expressed gratitude to investors for the remarkable interest in the offering. He reiterated the company’s ambition to expand its global footprint and enhance Pakistan’s reputation as a leading tire exporter.
Looking ahead, SLM Tyres aims to continually diversify into new markets, driven by the capital infusion from this IPO. The company remains committed to delivering quality products and contributing to Pakistan’s industrial landscape.
