Service Long March Tyres Limited (SLM) filed its prospectus with the Pakistan Stock Exchange (PSX) and Securities and Exchange Commission of Pakistan (SECP) on Tuesday, targeting Rs 5.6 billion to Rs 7.8 billion through an initial public offering that offers investors a 5% equity stake in Pakistan’s largest all-steel radial tyre manufacturer at a floor price of Rs 14.25 per share. The IPO proceeds will part-finance a Rs 22.5 billion Passenger Car Radial (PCR) tyre manufacturing project at SLM’s existing Nooriabad, Sindh complex — the company’s entry into Pakistan’s fast-growing passenger vehicle tyre segment.
| Parameter | Detail |
|---|---|
| Issuer | Service Long March Tyres Limited (SLM) |
| Disclosed by | Service Global Footwear Limited (PSX: SGFL) |
| Shares offered | ~389.7 million ordinary shares |
| Floor price | Rs 14.25 per share |
| IPO size at floor | Rs 5.6 billion |
| IPO size at ceiling | Rs 7.8 billion |
| Post-IPO stake | 5% of total issued capital |
| Regulator | SECP / PSX |
| Proceeds use | PCR tyre project (part-funding) |
| Total PCR project cost | Rs 22.5 billion |
According to the disclosure submitted to the PSX and SECP, SLM plans to raise between Rs 5.6 billion and Rs 7.8 billion through the IPO. The proposed offer consists of approximately 389.7 million ordinary shares at a floor price of Rs 14.25 per share, representing a 5% stake in the company after listing. The company said the proceeds from the offering will be used to help finance the establishment of a passenger car radial tyre manufacturing project with an estimated total cost of Rs 22.5 billion. The remaining funding requirements are expected to be met through long-term financing and internal cash flows.
The Board of Service Long March Tyres Limited approved the establishment of a Passenger Car Radial tyre manufacturing project in Pakistan at SLM’s existing location in Nooriabad, Sindh. SLM will make an investment of US $80 million and will serve the domestic as well as export markets.
The PCR project is SLM’s strategic diversification out of its existing Truck and Bus Radial (TBR) product line — where it already holds approximately 55% domestic market share — into the passenger vehicle segment. Pakistan’s passenger car market, recovering from its import-restriction trough of FY23, presents a large import-substitution opportunity: virtually all passenger car tyres in Pakistan are currently imported. A local PCR manufacturer of SLM’s scale could command premium pricing on domestic sales while also targeting export markets.
SLM was on track to achieve exports of $70 million by June 2026 and was aiming to cross $100 million in exports in the following financial year. Pakistan had become the fifth-largest tyre exporter to the United States and the seventh-largest exporter to Brazil, marking a sharp rise from a negligible presence in these markets just a few years ago.
In CY24, SLM reported year-on-year revenue growth of approximately 68%, with total sales reaching Rs 44,882 million. This growth was primarily driven by increased volumetric sales. Phase II of the company’s capacity expansion is underway and aims to increase annual production capacity to approximately 1.6 million tyres. Plans for Phase III remain intact, targeting a total installed capacity of approximately 2.4 million tyres per annum. The company’s financial risk profile is characterised by comfortable debt coverage metrics, healthy cash flows, and an efficient working capital cycle.
At Rs 44.9 billion in CY24 revenue, SLM would list as one of the larger industrial manufacturing companies on the PSX — with a 5% float implying a total market capitalisation at floor price of approximately Rs 112 billion ($400 million).
SLM is a joint venture between Pakistan’s Servis Group and China’s Chaoyang Long March Tyre Co. Ltd. Service Industries Limited (PSX: SRVI) and its subsidiary Service Global Footwear Limited (PSX: SGFL) hold 32.09% and 18.91% equity stakes in SLM, respectively. Myco Corporation holds the remaining stake alongside the Chinese partner.
The IPO represents the Servis Group publicly unlocking value in SLM while retaining majority ownership. Both listed parents — SRVI and SGFL — benefit from the listing through enhanced balance sheet valuation of their SLM stakes. SGFL in particular disclosed the IPO filing to PSX on Tuesday, having itself raised Rs 2.17 billion via IPO in 2021 specifically to invest in SLM’s Phase 1.
The IPO arrives on the back of a major fresh commitment. Service Long March Chairman Jin Yongsheng announced a $120 million additional investment in Pakistan during a meeting with Federal Minister for Commerce Jam Kamal Khan. Both sides discussed investment expansion, export growth, and tariff policy support for Pakistan’s tyre industry.
Prime Minister Shehbaz Sharif, briefed by the delegation, stated: “Joint ventures like Service Long March are extremely essential for the economic development of both countries, new employment opportunities, technology sharing, and increasing exports.”
Combined, the IPO fundraise (up to Rs 7.8 billion), the PCR project ($80 million / ~Rs 22.5 billion total cost), and the fresh $120 million commitment from the Chinese partner represent a total investment commitment of over $280 million at SLM — the largest single industrial manufacturing investment announcement in Pakistan in the current fiscal year.
For retail and institutional investors at PSX, SLM’s IPO offers direct exposure to Pakistan’s largest non-textile industrial exporter — a business already generating Rs 44.9 billion in annual revenue, holding 55% domestic TBR market share, and on track to add PCR production in a segment currently entirely served by imports. The KSE-100 closed at 151,673 on April 8, 2026, recovering from the fuel-crisis lows of 149,129. The IPO will run through a book-building process — the final offer price will be determined between the Rs 14.25 floor and up to 40% above it (Rs 19.95 ceiling). Subscription dates and book runner details will be disclosed when SECP approves the prospectus.
SLM began commercial production in March 2022 as Pakistan’s first all-steel radial TBR tyre facility, located at Nooriabad Industrial Zone, Sindh. Founded as a JV in 2019–2020, the plant achieved Phase 1 capacity of 600,000 tyres/year and now targets 2.4 million tyres/year at full Phase 3 build-out. The December 2025 IPO intention announcement was followed by the February 2026 PCR project approval and the April 2026 prospectus filing — completing a four-month preparation sprint from announcement to formal filing.