Service Long March Tyres Limited (SLM), a subsidiary of Service Industries Limited, is moving ahead with plans to raise approximately $28 million through an initial public offering, as it prepares for a listing on the Pakistan Stock Exchange in a bid to fund expansion and strengthen its market position.
The development comes as Pakistan’s equity market experiences renewed momentum, with several companies lining up listings amid improved investor sentiment and strong stock market performance.
According to disclosures, SLM’s board has approved the plan to raise capital through an IPO, marking a significant step toward transitioning from a privately held industrial venture to a publicly traded company.
Expansion strategy and capital needs
The IPO is expected to support SLM’s growth strategy, including capacity expansion, technological upgrades and strengthening its presence in both domestic and export markets.
SLM operates one of Pakistan’s most advanced tyre manufacturing facilities in Nooriabad, where it produces all-steel radial tyres for trucks and buses. Since starting commercial operations in 2022, the company has scaled production and generated strong revenue growth, reflecting rising demand for locally manufactured tyres.
Industry analysts say the company is now seeking additional capital to diversify into passenger car tyres and expand exports, a move aligned with Pakistan’s broader push toward industrial growth and import substitution.
The company is a joint venture between Pakistan’s Servis Group and China’s Chaoyang Long March Tyre Co, combining local manufacturing infrastructure with Chinese technical expertise in radial tyre production.
IPO pipeline gains momentum
SLM’s listing is part of a wider pipeline of initial public offerings expected in 2026, as Pakistan’s stock market continues to attract corporate issuers.
Market experts estimate that up to 16 IPOs could be launched during the year, driven by improved valuations, stabilising macroeconomic conditions and increased participation from retail investors.
“Valuations are becoming attractive for sponsors to actually consider listing their entities,” one investment banker said, highlighting growing confidence in the market environment.
For SLM, the listing also reflects a strategic effort by Service Industries to unlock value in its high-growth segments and offer investors exposure to Pakistan’s automotive and manufacturing sectors.
Industrial and market implications
Analysts say the IPO could enhance the representation of industrial manufacturing companies on the PSX, which has traditionally been dominated by banking, energy and cement stocks.
The tyre sector, in particular, is seen as a key component of Pakistan’s automotive ecosystem, with demand linked to both commercial transport and passenger vehicle growth.
SLM’s expansion into passenger car radial tyres is expected to reduce reliance on imports and improve the country’s trade balance, while also positioning the company as a regional exporter.
At the same time, the success of the IPO will depend on market conditions, pricing and investor appetite, particularly in a competitive environment where multiple companies are seeking to raise capital.
Outlook
As SLM prepares for its public debut, the offering is likely to be closely watched by investors as a test case for Pakistan’s manufacturing sector and IPO market revival.
If successful, the listing could pave the way for further industrial companies to tap equity markets for expansion, reinforcing the role of the PSX in supporting economic growth.
