Service Long March Tyres Limited

Description of Transaction:

• Arif Habib Limited acted as the Lead Consultant to the Issue (CTI) for the IPO of Service Long March Tyres Limited, successfully raising PKR 7,775 million through Pre-IPO and IPO.
• The initial book-building portion of the IPO had a floor offer size of PKR 4,165 million and attracted aggregate demand of PKR 69,378 million, resulting in an oversubscription of approximately 16.7x.
• The retail portion received 33,190 applications and was oversubscribed by approximately 7.6x. In total, approximately 35,565 applications were received across both the book-building and retail portion.
• Due to the oversubscription in the General Public Portion, 05% allocation was reallocated from Book Building, revising the final split to 70% Book Building and 30% General Public.
• The final strike price was discovered at PKR 19.95 per share.
• This transaction marked the largest IPO listing in Pakistan’s history, achieving the highest-ever investor participation, with subscription requests of approximately PKR 84 billion and around 35,500 applications received, representing the highest subscription amount and application count ever recorded in Pakistan’s capital markets.

About the Issuer:

• Service Long March Tyres Limited (SLM) is engaged in the manufacturing of Truck and Bus Radial (TBR) tyres in Pakistan and is also the country’s largest exporter of TBR tyres. The Company is now planning to expand its operations through the establishment of a dedicated Passenger Car Radial (PCR) tyre manufacturing facility.
• Headquartered in Nooriabad, Sindh, SLM has established a nationwide distribution presence across 30+ cities and a network of more than 100 dealers throughout Pakistan.
• The Company is the largest manufacturer and exporter of TBR tyres in Pakistan, serving both domestic and international markets.
• Through the IPO proceeds, SLM intends to develop a dedicated PCR tyre manufacturing facility, further expanding its footprint in the passenger vehicle segment alongside its existing TBR tyre manufacturing operations.