Service Long March Tyres Gets PSX Approval for Rs. 7.8 Billion IPO
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Service Long March Tyres Limited has received approval from the Pakistan Stock Exchange to launch an initial public offering aimed at raising Rs. 7.8 billion, as the company prepares to expand into the passenger car radial tyre segment.
The company plans to offer 389.738 million ordinary shares, representing 5 percent of its post IPO paid up capital. The shares will be issued through the book building process at a floor price of Rs. 14.25 per share, with the potential to increase by up to 40 percent to Rs. 19.95 per share, depending on investor demand.
The price can go up to Rs. 19.95 per share, depending on investor demand, with 75 percent of the shares allocated to institutional investors and 25 percent for retail investors.
The book-building phase is scheduled for May, after which the final strike price will be determined before opening the offer to the general public. The company plans to use the proceeds to set up a passenger car radial tyre manufacturing facility, reducing reliance on imported tyres.
The new plant is expected to begin operations in January 2028, with an initial production capacity of around 2 million tyres annually. Production is projected to increase to 2.5 million units in FY2029 and 3 million units by FY2030.
The expansion comes as Pakistan’s car tyre market remains heavily dependent on imports, creating a strong opportunity for local manufacturers. Service Long March was incorporated in 2020 as a joint venture between Service Industries, China’s Chaoyang Long March Tyre Company, and Myco Corporation.
The company started commercial operations in 2022 and operates a manufacturing facility in Nooriabad on around 50 acres of SEZ land. It has already established itself in the truck and bus radial tyre segment and exports to markets including the United States and Brazil.
Service Long March Tyres is backed by its parent Service Industries Limited, one of Pakistan’s oldest industrial groups. Founded in 1941 and listed on the Pakistan Stock Exchange, the company is a leading manufacturer of footwear, tyres, and rubber products.
