Service Industries Limited has announced that its subsidiary, Service Long March Tyres (Private) Limited (SLM), plans to raise up to Rs7.8 billion (approx. $28 million) through an Initial Public Offering (IPO) at the Pakistan Stock Exchange (PSX).
Service Industries Limited informed the bourse in a notice issued on Tuesday.
“Service Long March Tyres Limited (SLM), an associated company, has informed us that it has filed its prospectus with Pakistan Stock Exchange Limited for the listing of shares,” read the notice.
SLM intends to raise Rs5.6-Rs7.8 billion through an IPO with a proposed offer size of 389.7 million ordinary shares at a floor price of Rs14.25 per share, representing a 5% stake post listing.
“The IPO proceeds will be utilised for the establishment of a Passenger Car Radial tyres project with an estimated total project cost of Rs22.5 billion. Whereas, the remaining funding requirements will be met through long-term financing and SLM’s internal cash flows,” it added.
SLM is an all-steel radial truck and bus (TBR) Tyre manufacturing company in Pakistan, established through a JV between Servis Group and Chaoyang Long March of China.
Service Industries Limited and its subsidiary, Service Global Footwear Limited, hold 32.09% and 18.91% equity stakes in SLM, respectively.
Days ago, SLM announced a $120 million investment in Pakistan, affirming the country’s industrial and economic potential.
Announcing the investment of $120 million in Pakistan, the Chinese delegation shared that the company 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.
In January, the Chinese company had approved an $80 million investment to establish a Passenger Car Radial (PCR) tyre manufacturing facility in Nooriabad, Sindh.
Comments
Comments are closed for this article.