SECP approves Service Long March Tires IPO worth up to PKR 7.8B

The Securities and Exchange Commission of Pakistan has approved the initial public offering of Service Long March Tires Limited, bringing the total number of IPOs in FY2025-26 to 12.

The company plans to raise between PKR 5.6 billion and PKR 7.8 billion through the listing on the Pakistan Stock Exchange, with book-building scheduled for May 2026.

What are the key details of the Service Long March Tires IPO?

Service Long March Tires is offering 389,738,038 ordinary shares, representing 5% of its post-IPO paid-up capital.

The floor price is set at PKR 14.25 per share, with a maximum price of PKR 19.95, representing a 40% premium over the floor. Arif Habib Limited is acting as adviser and lead manager for the offering.

How will the IPO proceeds be used?

The company plans to use the proceeds to finance a Passenger Car Radial tire manufacturing project with an estimated total cost of PKR 22.5 billion. Service Long March Tires currently manufactures all-steel radial truck and bus tires at its facility in Nooriabad, Sindh.

The PCR project would expand its product range into the passenger vehicle segment.

SLM is a joint venture between Pakistan's Servis Group and China's Chaoyang Long March, and currently holds a significant share of the domestic truck and bus radial tire market.

Of the shares on offer, 75% will be allocated to institutional investors and high-net-worth individuals, with the remaining 25% available to retail investors

How is Pakistan's IPO market performing in FY2026?

The SLM approval brings the total number of IPOs in the current fiscal year to 12, reflecting continued primary market activity despite a challenging global environment.

Pakistan's capital market faced headwinds from the US-Iran conflict, rising oil prices, higher freight and insurance costs, and a broad risk-off sentiment in global markets.

The KSE-100 Index declined 14.54% during this period, but strong domestic investor participation and ongoing regulatory reforms helped sustain market confidence.