Service Long March Tyres Limited (SLM) has achieved a historic milestone by successfully completing the largest initial public offering (IPO) ever conducted on the Pakistan Stock Exchange (PSX), raising Rs. 7.78 billion amid overwhelming investor demand.
The landmark offering attracted approximately 35,565 applications across both the book-building and retail segments, making it the highest level of investor participation ever recorded in Pakistan’s IPO market.
Investor interest far exceeded expectations, with the institutional book-building portion oversubscribed by 16.7 times and reaching full subscription within just five seconds. The retail segment also witnessed exceptional demand, ending 7.6 times oversubscribed and receiving around 33,190 applications from investors nationwide.
The IPO consisted of 389.7 million ordinary shares, representing 5 percent of the company’s post-IPO paid-up capital. Although the floor price was set at Rs. 14.25 per share, strong demand pushed the strike price to Rs. 19.95 per share, increasing the overall transaction size from Rs. 5.55 billion to Rs. 7.78 billion.
SLM, Pakistan’s largest truck and bus radial tyre manufacturer, attracted a diverse range of investors, including commercial banks, mutual funds, insurance companies, development finance institutions, brokerage houses, foreign investors, high-net-worth individuals, and retail participants.
Market analysts said the broad participation reflects strong confidence in the company’s business model, future growth prospects, and Pakistan’s manufacturing sector.
Speaking at the listing ceremony, Muhammad Aurangzeb described the IPO as a major achievement for Pakistan’s capital markets and industrial sector.
He noted that the company was established with Chinese investment and expertise during the COVID-19 period and is expected to generate exports worth approximately $100 million next year. According to the finance minister, the successful listing demonstrates growing investor confidence in Pakistan’s economy and export-oriented growth strategy.
Meanwhile, Farrukh H. Sabzwari, Managing Director and Chief Executive Officer of the Pakistan Stock Exchange, said the IPO came during a period of increasing investor participation in the country’s stock market.
He highlighted that Pakistan recorded more than 563,000 unique investor numbers during the current fiscal year, describing the strong response from both institutional and retail investors as a positive sign for the future of the equity market.
According to Arif Habib Limited, which served as the lead manager and book runner for the transaction, the IPO attracted investor interest worth approximately Rs. 85 billion from nearly 36,000 investors.
The transaction has also become the largest private-sector IPO and the largest private-sector listing by market capitalization in Pakistan’s history, with an estimated market value of approximately Rs. 155 billion.
Market participants believe the successful completion of the IPO will strengthen confidence in Pakistan’s capital markets and encourage more companies to raise funds through public listings. Analysts also expect the record-breaking offering to broaden investor participation and support future growth in the country’s equity market.
