Service Long March Tyres Limited has secured approval from the Pakistan Stock Exchange (PSX) to proceed with its initial public offering (IPO), aiming to raise up to Rs7.8 billion to finance expansion into passenger car radial tyre manufacturing.
Under the approved plan, the company will issue 389.738 million ordinary shares, equivalent to 5 percent of its post-IPO paid-up capital. The shares will be offered through the book-building mechanism with a floor price set at Rs14.25 per share.
Depending on investor demand, the final strike price may climb up to 40 percent higher, reaching a maximum of Rs19.95 per share. As per the offering structure, 75 percent of the shares will be allocated to institutional investors, while the remaining 25 percent will be reserved for retail participants.
The book-building process is expected to take place in May, after which the final offer price will be determined ahead of the public subscription phase.
The company plans to utilize the IPO proceeds to establish a dedicated passenger car radial tyre manufacturing facility, a strategic move intended to reduce Pakistan’s dependence on imported tyres and strengthen domestic production capacity.
Commercial operations at the new plant are targeted to begin in January 2028 with an annual production capacity of approximately 2 million tyres. Capacity is projected to increase to 2.5 million tyres in FY2029 and reach 3 million units by FY2030.
Pakistan’s passenger car tyre market remains largely import-driven, creating significant growth opportunities for local manufacturers seeking to expand their footprint.
Incorporated in 2020, Service Long March Tyres is a joint venture between Service Industries Limited, China’s Chaoyang Long March Tyre Company, and Myco Corporation. The company commenced commercial production in 2022 and operates a manufacturing facility in Nooriabad spread over nearly 50 acres within a special economic zone.
The firm has already established itself in the truck and bus radial tyre segment and exports products to markets including the United States and Brazil, supported by the industrial backing of Service Industries Limited.
