In a historic achievement for Pakistan’s Industrial and Manufacturing sector, Service Long March Tyres Limited (“SLM”) has successfully completed its Initial Public Offering (“IPO”), receiving an overwhelming response from investors during both the Book Building and General Public subscription phases.
SLM, Pakistan’s largest Truck and Bus Radial (“TBR”) tyre manufacturer listed on the Pakistan Stock Exchange (“PSX”), has established new benchmarks in the country’s capital markets, reflecting exceptional investor confidence and unprecedented participation. The IPO attracted approximately 35,565 applications across the Book Building and Retail segments, marking the highest investor participation in the history of Pakistan’s IPO market.
The transaction raised PKR 7.78 billion, making it the largest IPO ever undertaken in Pakistan. The Book Building portion, initially comprising 292,303,528 ordinary shares, was fully subscribed within just five seconds and was oversubscribed by 16.7 times. The Retail portion, comprising 97,434,510 ordinary shares, was oversubscribed by 7.6 times and attracted approximately 33,190 applications from investors nationwide. Owing to the strong demand from retail investors, a 5% reallocation of shares was made from the Book Building portion to the Retail portion in accordance with the applicable regulations. The overwhelming response underscores the increasing depth, maturity, and growing participation of investors in Pakistan’s equity capital markets.
The offering comprised 389,738,038 ordinary shares, representing 5% of SLM’s post-IPO paid-up capital. The IPO floor price was set at PKR 14.25 per share. Following robust demand during the Book Building process, the strike price was successfully discovered at PKR 19.95 per share. Consequently, the transaction size increased to PKR 7.78 billion from PKR 5.55 billion at the floor price.
The SLM IPO witnessed participation from a diverse range of institutional and individual investors, including commercial banks, mutual funds, development finance institutions, insurance companies, investment banks, pension and employees’ funds, brokerage houses, high-net-worth individuals, foreign investors, and retail investors, highlighting broad-based confidence in SLM’s business fundamentals, growth prospects, and the future of Pakistan’s manufacturing sector.
An important highlight of the occasion was the participation of Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue, Government of Pakistan, at the Gong Ceremony commemorating the successful listing of Service Long March Tyres Limited on the Pakistan Stock Exchange. Addressing the ceremony, the Finance Minister acknowledged the significance of the transaction for Pakistan’s capital markets and manufacturing sector, and emphasized the importance of encouraging greater private-sector participation in the capital markets to support economic growth, industrial development, and investment mobilization in the country.
Arif Habib Limited acted as the Lead Manager and Book Runner to the Issue and played a pivotal role in the transaction’s successful execution.
Mr. Muhammad Aurangzeb, Honorable Federal Minister for Finance & Revenue, remarked: “The budget presented last week sets a clear direction towards sustainable, export-led growth. 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. With 11 IPOs this fiscal year, investor confidence is ringing loudly from the PSX.
Service Long March is already among the most profitable tyre companies globally, proving that Pakistan can deliver industrial growth with an export-led model. I have personally followed this project since its inception, and I am proud to see it reach this stage. This IPO is a strong vote of confidence in Pakistan’s economy and its future trajectory, and I encourage the leadership of Long March to bring more ventures from Liaoning and Chaoyang to Pakistan, where the Government stands ready to support and facilitate further investment.”
At the listing ceremony, Mr. Farrukh H. Sabzwari, Managing Director & CEO of PSX stated: “Today’s Gong Ceremony is a landmark occasion for Pakistan’s capital market. This listing comes at a time when Pakistan has just presented a positive federal budget, offering relief to the salaried class, reducing super-taxes, and introducing incentives for housing and business. These measures, alongside today’s IPO, will boost investor sentiment and strengthen the market outlook.
Despite global challenges, our markets remain resilient, with PSX touching PKR 21 trillion market capitalization, average daily trading value PKR 57 million and the third highest number of IPOs in 25 years, with double-digit listings last seen in FY05, FY06 & FY07. This fiscal year alone, we have recorded more than 563,000 unique investor numbers (UINs), with Millennials and Gen Z driving participation through investor awareness sessions and education initiatives.
SLM’s IPO is record-breaking, raising billions and attracting both institutional and retail investors. The Book Building tranche was oversubscribed multiple times, while retail participation was overwhelming, with 33,190 applications received nationwide. This demonstrates not only investor confidence in SLM’s fundamentals but also the resilience of Pakistan’s equity markets. Transparency, timely disclosures, and strong governance will ensure continued investor trust and sustained performance.
We are proud that Pakistan’s capital markets remain among the best-performing frontier markets globally, with returns of 8.13% in USD terms since inception, and ranking among the top markets over the past one, three and five years. Our fundamentals remain strong, and our focus is clear: expanding the investor base and encouraging more listings through platforms such as IPO roundtables and other awareness initiatives.
Mr. Ali Farid Khwaja, SECP Commissioner, added: “This is a special day for Pakistan as we celebrate both the success of CPEC and the listing of SLM. The IPO set records in demand and subscription, reflecting strong investor confidence. SECP is committed to enabling more companies to list and supporting PSX’s ambitious target of expanding the investor base fivefold to 2.5 million investors in the coming years. We congratulate SLM and its Chinese partners on this achievement, and assure our continued support for Pakistan’s capital market growth. The collaboration among regulators, PSX, and market participants makes such milestones possible, and we look forward to more listings that strengthen our financial ecosystem. Today’s ceremony is a reminder of how Pakistan’s capital markets can serve as a bridge for industrial growth and international cooperation.”
Mr. YOU Hang, Executive Vice President of China Financial Futures Exchange and Shareholder Director, PSX, stated: “On behalf of the Chinese Consortium, it is an honour to witness this historic listing. Oversubscribed 16.7 times within seconds, SLM’s IPO demonstrates confidence in Pakistan–China cooperation. This milestone strengthens industrial capacity, creates jobs and reduces FX expenditures. Since becoming PSX shareholders in 2017, we have contributed technology, expertise, and resources to enhance governance and efficiency. Servis Long March’s success is a model for future Chinese enterprises to list in Pakistan, reinforcing the enduring China–Pakistan friendship. We remain committed to promoting connectivity between the capital markets of both countries and supporting more high-quality cooperation projects. This listing is not only a financial achievement but also a symbol of the deepening industrial and financial ties between our nations.”
Commenting on this milestone achievement, Mr. Omar Saeed, Chief Executive Officer of Service Long March Tyres Limited, stated: We are deeply indebted to investors for the unprecedented interest they showed in our IPO. Pakistan is now on the global map as a tyre exporting country, and we intend to keep this journey going. SLM will enter new markets every year, and with the new capital from this IPO, we will advance Pakistan’s reputation not only in truck tyres but also in passenger car tyres.
Mr. Shahid Ali Habib, Chief Executive Officer of Arif Habib Limited, commented on the successful IPO, stating: We are proud to have successfully concluded the IPO of Service Long March Tyres Limited, which has emerged as the most successful and widely participated IPO in Pakistan’s capital market history.
The IPO set several new benchmarks, attracting investor interest of approximately PKR 85 billion (USD 300 million) from around 36,000 investors, while raising PKR 7.8 billion, the largest private-sector IPO in Pakistan’s history. It also represents the largest private sector listing by market capitalization, at approximately PKR 155 billion (USD 556 million).
The Book Building portion was fully subscribed in just five seconds and oversubscribed nearly 17 times, reflecting strong confidence among both institutional and retail investors in the company’s fundamentals and growth potential. We sincerely thank all investors and stakeholders for their trust and support in this landmark transaction.
Mr. Ruhail Muhammad, Chairman – Pakistan Stock Exchange, remarked: “The Service Long March Tyres listing highlights two important themes. First, the overwhelming investor response reflects growing confidence in Pakistan’s economy and capital markets. Domestic investors are increasingly committing capital, encouraged by the improving macroeconomic stability under the Finance Minister and his team — and this confidence now extends beyond the stock market into the real economy.
Second, this listing underscores the importance of China–Pakistan collaboration as CPEC moves into its second, industry-led phase. Having been personally involved in energy projects during CPEC’s first phase, I know how critical they were in easing Pakistan’s energy shortages. This new phase is about industrial and financial integration, and, as the first Pakistan–China joint venture to list on the Pakistan Stock Exchange, Service Long March Tyres is a landmark in this regard. This milestone will encourage other ventures to follow, strengthening transparency, governance, and investor confidence.”
The successful completion of SLM’s IPO represents a landmark achievement for Pakistan’s capital markets and serves as a strong testament to investor appetite for high-quality growth companies. The transaction is expected to further strengthen confidence in the IPO market and encourage greater participation from both issuers and investors in the years ahead.
