SLM raises record Rs7.78bn in largest-ever IPO

KARACHI: Service Long March Tyres Limited (SLM) has made history in Pakistan’s capital markets by successfully completing the country’s largest-ever private sector Initial Public Offering (IPO), raising a record Rs7.78 billion.

The listing on the Pakistan Stock Exchange (PSX) drew Rs85 billion (USD 300 million) in total investor interest across approximately 35,565 institutional and retail applications. Bidding reached a frenzy during the institutional book-building phase, which was fully subscribed within just five seconds and closed 16.7 times oversubscribed, while overwhelming retail demand led to a 7.6-times oversubscription.

This massive appetite pushed the final strike price to Rs19.95 per share from a floor price of Rs14.25, propelling SLM’s post-listing market capitalisation to Rs155 billion (USD 556 million) and making it the largest private sector listing by market value in Pakistan’s history.

Beyond its financial milestones, the debut marks a watershed moment for international cooperation as the first Pakistan-China joint venture to list on the PSX, serving as a model for the industrial phase of the China-Pakistan Economic Corridor (CPEC).

Commemorating the achievement at the PSX Gong Ceremony, Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, highlighted that the company was built during the peak of COVID-19 with Chinese expertise and is already on track to achieve USD 100 million in exports next year.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb praised the company’s trajectory.

“The listing of SLM is a proud milestone, built during the peak of COVID with Chinese expertise and investment, and now on track to achieve USD 100 million in exports next year,” Minister Aurangzeb stated, adding that the company is already among the most profitable tyre manufacturers globally.

YOU Hang, Executive Vice President of the China Financial Futures Exchange and PSX Shareholder Director, noted that the blockbuster listing “demonstrates confidence in Pakistan–China cooperation” and will serve as a model for future Chinese enterprises looking to tap into Pakistan’s capital markets.

Backed by the Securities and Exchange Commission of Pakistan’s (SECP) commitment to expand the country’s investor base fivefold, SLM’s management, led by CEO Omar Saeed and lead manager Arif Habib Limited, announced that the newly raised capital will be used to enter new global markets annually and expand production from truck and bus radial tyres into passenger car tyres.

According to PSX Managing Director & CEO Farrukh H. Sabzwari, the market has recently touched a Rs21 trillion market capitalisation, tracking double-digit IPO listings for the first time since the mid-2000s.

Sabzwari also highlighted a major demographic shift, noting that the exchange recorded over 563,000 unique investor numbers (UINs) this fiscal year, with Millennials and Gen Z heavily driving market participation.

Copyright Business Recorder, 2026