SLM Tires IPO shatters records with PKR 69.4 billion in investor bids
The transaction marks the highest amount ever raised by any IPO at the Pakistan Stock Exchange
Business Desk
The Business Desk tracks economic trends, market movements, and business developments, offering analysis of both local and global financial news.
The strike price was set 40% above the floor price, indicating strong demand from institutional bidders
Service Long March Tires Limited's (SLM) initial public offering (IPO) was oversubscribed 16.7 times during its two-day book building, attracting investor bids of approximately PKR 69.4 billion ($250 million).
The transaction sets a new record for IPO demand on the Pakistan Stock Exchange (PSX).
The company raised its maximum target of PKR 7.77 billion at the cap price, representing a 40% premium over the floor price. Most bids came from institutional investors and high-net-worth individuals drawn by the company's export potential and long-term growth outlook.
Market participants described the level of participation as unprecedented for Pakistan's IPO market.
How much did SLM Tires raise in its IPO?
SLM Tyres' IPO achieved its maximum fundraising target of PKR 7.77 billion. The transaction also reached the maximum cap price.
The strike price was set 40% above the floor price, indicating strong demand from institutional bidders.
The transaction marks the highest amount ever raised by any IPO at the Pakistan Stock Exchange.
Why did the SLM Tires IPO attract record bids?
The response reflects strong investor confidence in SLM Tires' fundamentals, export potential, and long-term growth outlook.
The transaction is among the most strongly participated industrial IPOs in Pakistan's recent capital market history.
It also reflects a growing appetite for export-oriented manufacturing companies with scale, technology advantage, and regional market access.
Arif Habib Limited served as the lead manager and book runner for the IPO. Its Chief Executive Officer, Shahid Ali Habib, called the response a historic moment for Pakistan's capital market.
Habib said the transaction is the largest in the history of the Pakistan Stock Exchange. It generated investor interest of approximately PKR 70 billion ($250 million) and raised PKR 7.77 billion.
Habib said the response shows Pakistan's capital market is ready to support companies with strong fundamentals, export capability, scale, and a clear growth strategy.
What does the IPO mean for Pakistan's capital market?
The successful book building is being viewed as a landmark transaction for the Pakistan-China joint venture in the manufacturing sector.
It also marks a strong signal of renewed investor confidence in export-led industrial listings on the Pakistan Stock Exchange.
Comments
See what people are discussing