Service Long March Tyres Limited’s initial public offering (IPO) book building has witnessed historic investor participation, oversubscribed 16.7x, generating total interest of approximately Rs. 69.4 billion ($250 million) during the two-day process, marking a remarkable milestone for Pakistan’s capital market.
The IPO received the highest ever bids by any IPO at the Pakistan Stock Exchange, according to a statement. Market participants described the level of participation as unlike anything seen before in Pakistan’s IPO market, reflecting strong confidence from institutional investors and high-net-worth individuals in the company’s fundamentals, export potential and long-term growth outlook.
The IPO has already achieved its maximum fundraising target of Rs. 7.77 billion, with the transaction also achieving the maximum cap price, representing a 40% premium over the floor price.
The overwhelming response has positioned the transaction among the most strongly participated industrial IPOs in Pakistan’s recent capital market history. It also highlights growing investor appetite for export-oriented manufacturing companies with scale, technology advantage, and regional market access.
Speaking on the successful transaction, Arif Habib Limited CEO Shahid Ali Habib, the lead manager and book runner for the IPO, said the response marked a historic moment for Pakistan’s capital market. “Service Long March Tyres’ IPO is the largest transaction in the history of the Pakistan Stock Exchange, generating investor interest of approximately Rs. 70 billion and raising Rs. 7.77 billion, which is also the highest amount ever raised by any IPO at PSX,” he said.
“The response to Service Long March Tyres’ IPO shows that Pakistan’s capital market is ready to support companies with strong fundamentals, export capability, scale, and a clear growth strategy,” he added.
The successful book building is being viewed as a landmark transaction for Pakistan-China joint venture in the manufacturing sector and a strong signal of renewed investor confidence in export-led industrial listings.