Pakistan's Servis Group enters $1bn club

Pakistan’s Servis Group market valuation crossed over $1 billion mark after its Service Long March Tyres Limited (SLM) share price surged by a maximum allowed increase of 10% in a day on the first trading day at the Pakistan Stock Exchange (PSX) on Monday.

SLM share price opened with a maximum allowed increase of 10.03% (or Rs2) at Rs21.95 and maintained the price through the day. Traders exchanged a total number of shares at 620,940 on the day, according to the PSX trading screen.

“Today, the market capitalisation of Servis Group on the Pakistan Stock Exchange has grown past $1 billion,” SLM CEO Omar Saeed said while speaking at a gong ceremony organised to mark the company listing at the PSX.

He elaborated that the standalone market valuation of SLM crossed the $600 million mark on the day. The two other group companies that helped the group join the $1 billion club were Service Industries and Service Global, he added while talking to media on the sideline of the PSX event.

The truck and buses’ radial tyre manufacturer raised Rs7.78 billion through selling its 389.74 million shares at the strike price of Rs19.95 per share to investors through book-building and initial public offering (IPO) at the PSX in May 2026.

Saeed said they were in the process of expanding their current tyre manufacturing plant. The new production line would be utilised to produce radial tyres for cars - from a small car to big SUVs.

The plant is scheduled to begin commercial production by December 2027 with an installed capacity of 2 million car tyres, according to Saeed.

“We are expanding the production facility with the help of IPO proceeds, investing another $120 million into the new plant. Earlier, we have already invested $300 million in the project.”

He claimed SLM was having 60% market share in the truck and buses tyre sales category in Pakistan. Besides, it was exporting around 40% of its total production to high end markets around the world, including the US and Brazil.

“We are excited to begin exports to Poland, Europe, after two months. We have achieved $70 million export this year [FY26] and poised to achieve $100 million in export proceeds next year [FY27].

“SLM remains a competitive exporter in the region. It is better competing with Cambodia, Thailand and India in the region and exporting tyres to category ‘A’ markets worldwide. The productive labour and cheaper energy from renewable energy like wind and solar have made it competitive around the world,” he said.