Prospectus filed for IPO: SLM aims to raise up to Rs7.8bn for tyre project

KARACHI: Service Industries Limited has formally disclosed that its tyre manufacturing subsidiary, Service Long March Tyres Limited (SLM), filed its prospectus with the Pakistan Stock Exchange (PSX) for an Initial Public Offering (IPO).

It is aimed at raising substantial capital for a large-scale expansion in the passenger car radial tyre segment.

According to the official filing, Service Long March Tyres Limited (SLM), a subsidiary/associated company of Service Industries Limited, has moved forward with the listing process by submitting its prospectus to the PSX for public offering approval. The IPO structure comprises 389.7 million ordinary shares, representing a 5 percent post-listing equity stake in the company.

The company aims to raise between Rs 5.6 billion and Rs 7.8 billion through the offering, with a floor price set at Rs 14.25 per share, establishing the base valuation for investor participation in the upcoming listing.

The proceeds from the IPO will primarily be utilized for the establishment of a Passenger Car Radial (PCR) tyres manufacturing project, marking a major expansion in SLM’s production capacity and product diversification within Pakistan’s automotive tyre industry. The total estimated cost of the project stands at Rs 22.5 billion, with the remaining financing requirement to be met through a combination of long-term financing arrangements and internal cash flows of the company.

Market observers note that the planned listing of SLM represents a significant step in the formalisation and capital market integration of Pakistan’s tyre manufacturing sector, particularly at a time when demand for locally produced automotive components continues to rise in line with automobile industry expansion and import substitution trends.

With the prospectus now formally filed, the IPO process is expected to proceed through regulatory review and subsequent approvals before offering details are finalized for investors, marking a key development for Service Industries Limited’s growth strategy in the polymer and tyre manufacturing segment.

Copyright Business Recorder, 2026