Service Long March (SLM) Tyres, a Pakistani-Chinese joint venture, is set to enhance domestic tire manufacturing capacity and reduce Pakistan's reliance on imported tires, according to Pakistani state media reports citing officials. The development follows the company's record-breaking Initial Public Offering (IPO) at the Pakistan Stock Exchange (PSX).
Record IPO and Investment
On June 15, SLM Tyres raised Rs7.78 billion ($28 million) in its IPO, which the PSX described as the largest private sector IPO in Pakistan's history. The IPO floor price was set at Rs14.25 per share, but strong demand during book building drove the strike price to Rs19.95 per share. The offering attracted a wide range of investors, including banks, mutual funds, insurers, pension funds, brokers, high-net-worth individuals, and foreign investors.
The company had earlier received approval from the PSX in April for an IPO of 389.738 million shares. SLM Tyres was established in 2020 as a joint venture between China's Chaoyang Long March Tyre Company Limited and Pakistan's Service Industries Limited and Myco Corporation.
Boosting Local Manufacturing and Exports
State-run Radio Pakistan reported that the investment will help enhance local tire manufacturing capacity, reduce dependence on imports, and boost export potential. The development is seen as a reflection of a promising future for Pakistan-China cooperation in investment, industrial growth, and financial integration.
Finance Minister Muhammad Aurangzeb, speaking at the IPO ceremony, emphasized the need to boost private sector participation in capital markets to drive economic growth, industrial development, and investment mobilization. He stated, “The listing of SLM is a proud milestone, built during the peak of COVID with Chinese expertise and investment, and now on track to achieve USD 100 million in exports next year. Service Long March is already among the most profitable tire companies globally, proving that Pakistan can deliver industrial growth with an export-led model.”
SLM Tyres manufactures radial tires for heavy commercial vehicles, combining advanced Chinese technology with local manufacturing capabilities in Pakistan. CEO Omar Saeed expressed gratitude to investors for the unprecedented interest, saying, “Pakistan is now on the global map as a tire exporting country, and we intend to keep this journey going.”
Broader China-Pakistan Economic Ties
China is a major ally and investor in Pakistan, having pledged over $65 billion in investment under the China-Pakistan Economic Corridor (CPEC) for road, infrastructure, and development projects. Several Chinese private sector manufacturers have also undertaken joint ventures in Pakistan, further strengthening economic ties between the two countries.
