Pakistan’s largest tyre manufacturer achieves the country’s biggest private-sector IPO, attracting record investor participation.
Pakistan’s capital markets achieved a historic milestone as Service Long March Tyres Limited (SLM) successfully completed the country’s largest-ever private sector Initial Public Offering (IPO), raising a record Rs7.78 billion.
The landmark transaction reflects growing investor confidence in Pakistan’s manufacturing sector and equity markets.
SLM, Pakistan’s leading manufacturer of Truck and Bus Radial (TBR) tyres and a newly listed company on the Pakistan Stock Exchange (PSX), witnessed an overwhelming response from investors during both the Book Building and General Public subscription phases.
The IPO attracted around 35,565 applications across institutional and retail categories, marking the highest investor participation ever recorded in Pakistan’s IPO history.
The Book Building portion, consisting of 292.3 million ordinary shares, was fully subscribed within just five seconds and ended up oversubscribed by an impressive 16.7 times.
Meanwhile, the retail segment, comprising 97.4 million shares, was oversubscribed by 7.6 times, drawing nearly 33,190 applications from investors nationwide.
Due to strong demand from retail investors, authorities reallocated 5% of shares from the Book Building portion to the retail segment in line with applicable regulations.
The overwhelming participation highlights the increasing maturity and depth of Pakistan’s capital markets.
The IPO offered a total of 389.7 million ordinary shares, representing 5% of SLM’s post-IPO paid-up capital.
While the floor price was fixed at Rs14.25 per share, strong investor demand pushed the strike price to Rs19.95 per share, increasing the transaction size from Rs5.55 billion to Rs7.78 billion.
The offering attracted a diverse range of investors, including banks, mutual funds, insurance companies, pension funds, brokerage houses, high-net-worth individuals, foreign investors, and retail participants.
Their participation reflects confidence in SLM’s growth potential and Pakistan’s industrial future.
The listing ceremony at the Pakistan Stock Exchange was attended by Finance Minister Senator Muhammad Aurangzeb, who highlighted the importance of greater private-sector participation in capital markets to promote investment, industrial expansion, and economic growth.
The successful SLM IPO marks a defining moment for Pakistan’s financial landscape and is expected to encourage more companies to access capital markets in the years ahead.
