Service Long March Tyres Limited (SLM), a subsidiary/associated company of Service Industries Limited, has filed its prospectus with the Pakistan Stock Exchange (PSX) for the proposed listing of its shares, according to a material information disclosure issued by Service Industries Limited.

The company plans to raise between PKR 5.6 billion and PKR 7.8 billion through an Initial Public Offering (IPO). The proposed offering comprises 389.7 million ordinary shares, with a floor price of PKR 14.25 per share. Following the listing, the offered shares are expected to represent a 5% stake in the company.

IPO to Support Passenger Car Radial Tyre Project

According to the disclosure, the proceeds from the IPO will be used to establish a Passenger Car Radial tyres project, with an estimated total project cost of PKR 22.5 billion. The IPO will therefore provide part of the financing required for the company’s planned expansion, while the remaining funding requirements are expected to be met through long-term financing and SLM’s internal cash flows.

The planned investment represents a significant capital commitment toward the passenger car tyre segment. By combining equity raised through the IPO with long-term financing and internal resources, SLM intends to put together the funding required for the project.

Prospectus Filed With PSX

The disclosure dated April 14, 2026, states that Service Long March Tyres Limited had informed Service Industries Limited that it had filed its prospectus with the Pakistan Stock Exchange for the listing of its shares. The announcement was made under the disclosure requirements of the PSX Rule Book and applicable provisions of the Securities Act, 2015.

The company’s disclosure form on page two repeats the key details of the proposed transaction, including the number of shares, floor price, targeted IPO proceeds and intended use of funds.

Funding Structure

The proposed financing structure can be summarized as follows:

  • IPO size: PKR 5.6 billion to PKR 7.8 billion

  • Shares offered: 389.7 million ordinary shares

  • Floor price: PKR 14.25 per share

  • Stake after listing: 5%

  • Estimated project cost: PKR 22.5 billion

  • Project: Passenger Car Radial tyres

  • Additional funding: Long-term financing and internal cash flows

The announcement provides the proposed financial structure and intended use of IPO proceeds, but does not in the disclosed material provide further details on the project’s implementation timeline, production capacity or expected financial returns.

What the Development Means for Investors

The proposed listing will bring Service Long March Tyres Limited to the public market and provide an equity-financing route for its planned passenger car radial tyre project. Investors evaluating the IPO would need to review the company’s prospectus and other applicable disclosures for detailed information on the business, financial position, project plans, risks and terms of the offering.

For Service Industries Limited, the disclosure marks another development involving its subsidiary/associated company as SLM moves toward a proposed public listing and seeks financing for a major tyre manufacturing project.