Service Long March Tyres IPO has marked a historic milestone for Pakistan’s corporate sector, helping Servis Group achieve a market valuation exceeding $1 billion. The achievement came after Service Long March Tyres Limited (SLM) made a strong debut on the Pakistan Stock Exchange (PSX), with its share price rising by the maximum permissible limit on its first trading day.
The successful listing highlights growing investor confidence in Pakistan’s manufacturing sector and demonstrates the increasing strength of locally developed industrial enterprises.
SLM Shares Hit Upper Limit on PSX Debut
SLM shares opened trading at Rs21.95, reflecting a gain of over 10% from the strike price of Rs19.95. The stock maintained the upper limit throughout the trading session, signaling strong demand from investors.
According to PSX data, more than 620,000 shares changed hands during the first day of trading. The impressive performance immediately boosted the overall valuation of Servis Group, placing it among Pakistan’s most valuable corporate groups.
Speaking at a gong ceremony held to celebrate the listing, SLM Chief Executive Officer Omar Saeed announced that the group’s combined market capitalization had crossed the $1 billion threshold.
A Landmark Achievement for Servis Group
The group’s valuation milestone was driven by three major companies:
Service Long March Tyres Limited (SLM)
Service Industries Limited
Service Global Footwear Limited
Omar Saeed noted that SLM alone achieved a market valuation exceeding $600 million on its debut day. The combined strength of the group’s listed companies ultimately pushed Servis Group into the exclusive billion-dollar club.
The achievement reflects years of investment in manufacturing, exports, and industrial expansion.
IPO Raised Nearly Rs8 Billion
The Service Long March Tyres IPO successfully raised approximately Rs7.78 billion through book-building and public subscription.
The company offered nearly 390 million shares at a strike price of Rs19.95 per share. Investor interest remained strong throughout the offering, making it one of the notable IPOs in Pakistan’s recent market history.
The funds raised will be used primarily to expand the company’s manufacturing capacity and strengthen its position in both domestic and international markets.
Major Expansion Planned for Car Tyre Production
A significant portion of the IPO proceeds will support the construction of a new production line dedicated to passenger vehicle tyres.
The upcoming facility is expected to manufacture tyres for:
Small passenger cars
Sedans
Crossovers
Sport Utility Vehicles (SUVs)
The company plans to begin commercial production by December 2027. Once operational, the plant will have an annual production capacity of approximately 2 million car tyres.
SLM is investing an additional $120 million into the expansion project, on top of the $300 million already invested.
Strong Export Growth Strengthens Outlook
SLM has established itself as one of Pakistan’s leading tyre exporters. The company currently exports around 40% of its total production to international markets.
Its products are already sold in countries including the United States and Brazil, while exports to Poland and other European markets are expected to begin soon.
The company reported export earnings of approximately $70 million during FY26 and expects exports to reach $100 million in FY27.
This growth demonstrates the increasing competitiveness of Pakistani manufacturing on the global stage.
Market Leadership and Competitive Advantage
SLM claims to hold roughly 60% of Pakistan’s truck and bus radial tyre market. The company believes its competitive position is supported by:
Skilled and productive workforce
Strategic investments in technology
Access to renewable energy sources
Growing export network
Strong domestic market presence
Management also highlighted that renewable energy sources such as solar and wind power have helped improve cost efficiency, enabling the company to compete with manufacturers from countries like Thailand, Cambodia, and India.
Conclusion
The Service Long March Tyres IPO represents a significant success story for Pakistan’s capital markets and manufacturing sector. With Servis Group surpassing the $1 billion valuation mark, expanding production capacity, and targeting higher exports, the company appears well-positioned for future growth.
As Pakistan continues to encourage industrial investment and export-oriented businesses, SLM’s successful listing could serve as a model for other companies seeking to raise capital through the stock market.
Umar Daraz is the Founder and Editor of TodayEast, an independent digital news platform covering global affairs, business, technology, sports, and world rankings. He specializes in data-driven journalism, international news analysis, economic trends, and emerging technologies. Through TodayEast, he aims to provide accurate, accessible, and insightful reporting on the stories shaping the world.
