Service Long March Tyres Ltd., Pakistan’s largest manufacturer of all-steel radial tires, has filed for an initial public offering next month that could be the largest private-sector listing in the nation’s history.
The Karachi-based company has submitted paperwork to raise as much as 7.8 billion rupees ($27.9 million) from the share sale, according to Shahid Ali Habib, chief executive officer at Arif Habib Ltd., manager and underwriter in the transaction.
At that size, it would be the country’s largest offering by a private company, surpassing Air Link Communication’s IPO in 2021, which raised 6.4 billion rupees, according to data compiled by Bloomberg. The only larger listings in the country’s history, Oil & Gas Development Co.’s in 2004 and Habib Bank Ltd.’s in 2007, were state-owned companies going public.
A stock rally and surging retail participation in the last few years is drawing companies in Pakistan back to the equity market this year. Some of the optimism may be dented by the benchmark KSE-100 Index declining 5.5% this year, compared with an 5.4% gain in the MSCI Frontier Markets index.
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Service Long March Tyres is a joint venture between China’s Chaoyang Long March Tyre Company Ltd. and Pakistan’s Servis Group. The company will become the first Chinese joint venture to be listed on Pakistan Stock Exchange. The IPO comprises 389.7 million ordinary shares that represent a 5% stake after the listing, according to a statement. The shares will be offered at a minimum price of 14.25 rupees a share.
The company benefits from corporate tax exemption until 2032 and has rapidly established itself as a leading domestic player with an estimated 55% market share in the all-steel tyre segment, according to Habib, chief executive officer at Arif Habib Ltd., the financial adviser for the transaction. It has also become one of the largest exporters from the country with over $50 million exports in fiscal 2025 with presence in the US, Brazil and other South American countries.
The IPO will fund a portion of the company’s expansion into passenger car radial tire manufacturing. The project, with an estimated cost of 22.56 billion rupees, will be funded through a mix of IPO proceeds, internal cash flows, and long-term financing. The company that started operations in 2022 currently makes tires for trucks and buses.
The new facility is expected to start production from January 2028.
