The Pakistan Stock Exchange recently granted approval to Service Long March Tyres Limited to launch an initial public offering. This strategic move aims to raise approximately 7.8 billion rupees to fund the company’s ambitious growth plans. The firm intends to offer nearly 390 million ordinary shares through a competitive book-building process. Investors can expect a floor price of 14.25 rupees per share, though high demand could push this figure up to 19.95 rupees. Following the institutional bidding phase in May, the company will open the remaining shares to the general public.
Expanding Local Production for Passenger Vehicles
Management plans to utilize these new funds to establish a modern manufacturing facility for passenger car tyres. This initiative marks a significant shift as the company seeks to reduce the country’s heavy reliance on expensive imported rubber products. According to the project timeline, the new plant should start operations by January 2028. Initially, the facility will produce two million tyres every year, with plans to scale up to three million units by 2030. Since the local car market currently lacks sufficient domestic supply, this expansion offers a massive opportunity for the brand to capture a larger market share.
Building on a Legacy of Industrial Success
Although the company only began its commercial journey in 2022, it carries the weight of a long industrial history. The business operates as a successful joint venture between Pakistan’s Service Industries and Chinese partners. Currently, the Nooriabad factory produces high-quality tyres for trucks and buses, which the firm already exports to international markets like the United States and Brazil. By moving into the passenger car segment, the group continues the legacy of its parent company, which has served the region since 1941. This new chapter strengthens the domestic manufacturing sector while creating sustainable value for local investors.
