Service Long March Tyres Limited (SLM) has set a new benchmark on the Pakistan Stock Exchange (Pakistan Stock Exchange) by executing the country’s largest initial public offering (IPO), raising Rs. 7.78 billion after unprecedented investor demand from both institutional and retail segments.
The IPO drew around 35,565 applications across book-building and retail phases, making it the highest participation ever recorded in Pakistan’s equity market. Demand in the book-building portion surged to 16.7 times the offer size and was fully subscribed within seconds, while the retail portion was oversubscribed by 7.6 times, attracting more than 33,000 applications nationwide.
The issue comprised 389.7 million ordinary shares, equal to 5 percent of the company’s post-IPO paid-up capital. Although the floor price was set at Rs. 14.25 per share, strong bidding pressure pushed the strike price to Rs. 19.95, lifting the total proceeds from Rs. 5.55 billion to Rs. 7.78 billion.
SLM, Pakistan’s leading manufacturer of truck and bus radial tyres, saw broad-based participation from commercial banks, mutual funds, insurance firms, DFIs, brokerage houses, high-net-worth individuals, foreign investors, and retail participants. Market observers say the diversity of investors reflects growing confidence in both the company’s fundamentals and the broader manufacturing outlook.
At the listing ceremony, Finance Minister Muhammad Aurangzeb termed the IPO a landmark moment for Pakistan’s capital markets and industrial base. He noted that the company—established with Chinese investment and technical collaboration during the Covid period—is projected to reach $100 million in exports next year, highlighting the government’s export-led growth direction.
Arif Habib Limited, the lead manager and book runner, reported total investor interest of nearly Rs. 85 billion from close to 36,000 participants, making it one of the most heavily oversubscribed offerings in Pakistan’s history. The listing is also being recognized as the largest private-sector IPO by market capitalization, valued at roughly Rs. 155 billion.
Officials at the Pakistan Stock Exchange said investor participation has been rising sharply, with over 563,000 unique investor accounts recorded in the current fiscal year. They added that strong IPO performance signals renewed confidence in equity markets and could encourage more companies to raise capital through public listings.
