Sino-Pakistani tire maker makes landmark debut in Pakistan

A joint Sino-Pakistani tire manufacturer debuted on the Pakistan Stock Exchange, a move that market participants described as the first listing by a Chinese-invested company on the country's bourse and a milestone in the integration of industrial and financial cooperation between China and Pakistan.

Service Long March Tyres Ltd, a joint venture between Pakistan's Servis Group and China's Chaoyang Long March Tyre Co Ltd, was listed on the PSX on Monday. Chinese shareholders held about 43 percent of the company before the offering.

The initial public offering raised 7.77 billion Pakistani rupees ($27.9 million), making it the largest private-sector IPO in Pakistan's capital market history. The book-building process attracted bids worth 69.4 billion rupees, representing an oversubscription of 16.7 times and setting records for both subscription amount and subscription speed on the exchange.

The listing comes as capital market cooperation is increasingly complementing trade, infrastructure, and industrial links under the China-Pakistan economic corridor. Market observers said the transaction could provide a reference case for Chinese-invested enterprises seeking to tap into local financing channels in Belt and Road economies.

You Hang, deputy general manager of China Financial Futures Exchange and a Chinese director of the Pakistan Stock Exchange, said the successful listing of SLM reflects the combined impact of industrial cooperation, technology transfer and, capital market support between China and Pakistan.

"The transaction serves as a key reference for more China-Pakistan cooperative projects seeking to access the PSX," You said.

In 2017, a Chinese-led consortium that included the China Financial Futures Exchange, the Shanghai Stock Exchange, and the Shenzhen Stock Exchange acquired a strategic stake in the Pakistan Stock Exchange, helping strengthen cooperation between the two countries' financial markets.

Proceeds from the IPO will mainly be used to finance the construction of a new passenger-car tire plant in Pakistan. The project, with a planned investment of about 22.56 billion rupees, is expected to begin operations in 2028.