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KARACHI: Service Long March Tyres Limited (SLM Tyres), Pakistan’s first and largest truck and bus radial (TBR) tyre manufacturer and exporter, has unveiled ambitious expansion and growth plans ahead of its upcoming Initial Public Offering (IPO), with the company aiming to make Pakistan self-sufficient in truck and passenger car tyres while positioning itself as a billion-dollar manufacturing enterprise within the next two years.

Addressing investors and market participants during a pre-IPO roadshow in Karachi, Chief Executive Officer of Service Long March Tyres Limited, Omar Saeed, said the company was targeting to transform SLM Tyres into Pakistan’s first billion-dollar tyre manufacturing company through aggressive capacity expansion, exports, technology transfer, and product diversification initiatives.

“Pakistan’s tyre sector is entering a transformative phase driven by industrial growth, infrastructure expansion, and export potential. Service Long March Tyres is strategically positioned to lead this transformation,” Omar Saeed said, adding that the company’s current valuation based on the IPO price band stands at approximately USD550 million.

He said the company’s long-term vision was to reduce Pakistan’s dependence on imported truck and passenger car tyres by strengthening local manufacturing capabilities and leveraging strategic partnerships with Chinese manufacturers.

SLM Tyres is scheduled to launch its IPO later this month, offering shares within a price band ranging from Rs14.25 to Rs19.95 per share. The investor registration period will remain open from May 13 to May 15, while the book-building process is scheduled for May 18 and 19, 2026.

The IPO size is expected to range between Rs5.5 billion and Rs7.8 billion, representing 5 percent of the company’s post-issue capital. Arif Habib Limited is acting as the lead manager for the offering.

During the roadshow, company officials highlighted SLM Tyres’ strong footprint in Pakistan’s automotive manufacturing sector, with a nationwide network comprising over 100 dealers and distributors across more than 30 cities. The company currently commands an estimated 59 percent market share in Pakistan’s truck and bus radial tyre segment.

Management informed investors that the company’s annual production capacity presently stands at approximately 1.6 million tyres and is expected to increase to 2 million tyres by July 2026, providing nearly 25 percent additional production capacity. The expansion is expected to support rising domestic demand and improve export volumes.

SLM Tyres further highlighted Pakistan’s large tyre import bill and the significant market gap that exists in the domestic tyre industry, particularly in the passenger car radial tyre segment. The company plans to capitalize on this demand through import substitution and increased localisation.

Omar Saeed described the IPO as more than a capital market transaction, calling it a long-term commitment towards building a globally competitive tyre manufacturing platform in Pakistan and encouraging further industrial joint ventures between Pakistani and Chinese companies.

Analysts said the offering is expected to attract strong interest from both institutional and retail investors due to the company’s growth profile, expanding export footprint, consistent dividend outlook, and direct exposure to Pakistan’s industrial and automotive expansion story.

Copyright Business Recorder, 2026

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