Pakistan’s largest IPO debuts on PSX

June 16, 2026 (MLN): Service Long March Tyres Limited (SLM), Pakistan’s largest Truck and Bus Radial (TBR) tyre manufacturer, has successfully completed its Initial Public Offering (IPO), attracting unprecedented investor participation and setting multiple new benchmarks in Pakistan’s capital markets.

The IPO generated overwhelming interest during both the book-building and general public subscription phases, receiving approximately 35,565 applications across the two segments, the highest investor participation ever recorded in Pakistan’s IPO market.

The transaction raised Rs7.78bn, making it the largest IPO in Pakistan’s history. The offering comprised 389,738,038 ordinary shares, representing 5% of SLM’s post-IPO paid-up capital, as per press release issued.

The IPO floor price was set at Rs14.25 per share, while strong demand during book building led to the discovery of a strike price of Rs19.95 per share, increasing the size of the transaction from Rs5.55bn at the floor price to Rs7.78bn.

The book-building portion, consisting of 292,303,528 ordinary shares, was fully subscribed within just five seconds and was oversubscribed by 16.7 times.

The retail portion, comprising 97,434,510 ordinary shares, was oversubscribed by 7.6 times and attracted approximately 33,190 applications from investors across the country.

Due to strong retail demand, a 5% reallocation of shares was made from the book-building tranche to the retail tranche in accordance with applicable regulations.

The IPO attracted participation from a diverse investor base, including commercial banks, mutual funds, development finance institutions, insurance companies, investment banks, pension and employee funds, brokerage houses, high-net-worth individuals, foreign investors and retail investors.

The broad-based participation reflected confidence in SLM’s business model, growth prospects and Pakistan’s manufacturing sector.

A gong ceremony was held at the Pakistan Stock Exchange (PSX) to commemorate the successful listing of SLM, attended by Finance Minister Muhammad Aurangzeb.

Addressing the ceremony, the finance minister said the federal budget presented last week set a clear direction towards sustainable, export-led growth.

He described SLM’s listing as a significant milestone, noting that the project was developed during the peak of the COVID-19 pandemic with Chinese expertise and investment and is expected to achieve exports of around $100 million next year.

He highlighted that Pakistan witnessed 11 IPOs during the current fiscal year, describing the trend as a strong indication of growing investor confidence.

He said Service Long March had emerged among the most profitable tyre manufacturers globally and demonstrated Pakistan’s ability to achieve industrial growth through an export-oriented model.

Aurangzeb also encouraged the company’s Chinese partners to bring additional investments from Liaoning and Chaoyang to Pakistan, assuring government support for future ventures.

PSX Managing Director and CEO Farrukh H. Sabzwari termed the listing a landmark event for Pakistan’s capital market, stating that it came at a time when the country had announced a positive federal budget featuring relief measures for salaried individuals, reductions in super taxes and incentives for housing and businesses.

He said Pakistan’s capital market had remained resilient despite global economic challenges, with PSX market capitalization reaching Rs21 trillion and average daily trading value standing at Rs57m.

He noted that FY26 marked the third-highest number of IPOs in the last 25 years, while more than 563,000 Unique Investor Numbers (UINs) had been recorded during the fiscal year, with Millennials and Generation Z contributing significantly to investor participation.

Sabzwari said the SLM IPO raised billions of rupees and attracted both institutional and retail investors, with the book-building portion oversubscribed multiple times and retail participation proving exceptionally strong.

He added that transparency, strong governance and timely disclosures would remain critical in maintaining investor confidence and sustaining market growth.

He further noted that Pakistan’s capital market remained among the best-performing frontier markets globally, generating returns of 8.13% in dollar terms since inception and ranking among the top-performing markets over one-, three- and five-year periods.

SECP Commissioner Ali Farid Khwaja described the listing as an important moment for Pakistan and a reflection of the success of economic cooperation under the China-Pakistan Economic Corridor (CPEC).

He said the record demand for the IPO demonstrated strong investor confidence and reiterated the Securities and Exchange Commission of Pakistan’s commitment to facilitating more listings and supporting PSX’s objective of increasing the investor base fivefold to 2.5 million investors in the coming years.

Khwaja congratulated SLM and its Chinese partners on the achievement and said continued collaboration among regulators, the exchange and market participants would help strengthen Pakistan’s financial ecosystem and encourage additional listings.

Representing the Chinese consortium shareholders of PSX, YOU Hang said the successful IPO highlighted the strength of Pakistan-China economic cooperation. He noted that the issue was oversubscribed 16.7 times within seconds and said the listing would contribute to industrial expansion, job creation and reduced foreign exchange outflows.

He said that since becoming shareholders in PSX in 2017, the Chinese consortium had contributed technology, expertise and resources aimed at improving governance and operational efficiency.

He added that Service Long March’s successful listing reinforces the enduring Pakistan-China friendship and could serve as a model for future Chinese enterprises seeking to list in Pakistan, further deepening financial and industrial cooperation between the two countries.

YOU Hang said the consortium remains committed to promoting connectivity between the capital markets of both countries and supporting more high-quality cooperation projects.

SLM Chief Executive Officer Omar Saeed thanked investors for their overwhelming response to the IPO and said Pakistan had now established itself as a tyre-exporting nation.

He stated that the company planned to enter new international markets every year and would use the capital raised through the IPO to strengthen its position in both truck and passenger car tyre segments.

Arif Habib Limited served as Lead Manager and Book Runner to the issue. Commenting on the transaction, Shahid Ali Habib said the IPO had become the most successful and widely participated offering in Pakistan’s capital market history.

He disclosed that investor demand reached approximately Rs85bn, equivalent to around $300m, from nearly 36,000 investors. According to him, the IPO represented the largest private-sector IPO in Pakistan’s history and the largest private-sector listing by market capitalization, valued at approximately Rs155bn, or around $556m.

PSX Chairman Ruhail Muhammad said the listing reflected growing confidence in Pakistan’s economy and capital markets, supported by improving macroeconomic stability.

He noted that he had been personally involved in energy projects during the first phase of CPEC and witnessed their role in addressing Pakistan’s energy shortages.

He said the next phase of the initiative is focused on industrial and financial integration, with the listing of Service Long March representing a significant milestone in that transition.

Ruhail added that rising investor confidence was increasingly translating into capital deployment across the broader economy, beyond the stock market.

He further noted that the transaction highlighted the importance of Pakistan-China cooperation as CPEC enters its second phase focused on industrial development.

He described Service Long March as the first Pakistan-China joint venture to be listed on PSX and said the achievement could encourage other ventures to pursue public listings while enhancing transparency, governance standards and investor confidence.

The transaction also highlights growing investor appetite for high-quality growth companies and demonstrates the increasing depth and maturity of Pakistan’s capital markets, supported by stronger participation from both institutional and retail investors.

The successful completion of SLM’s IPO marks a landmark achievement for Pakistan’s capital markets, showing strong investor appetite for high-growth industrial companies and reinforcing confidence in the country’s equity market.

The transaction is expected to encourage greater participation from both issuers and investors and support the continued development of Pakistan’s capital market ecosystem.

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