Key Takeaways
- Service Industries Ltd. has announced the establishment of a new tyre subsidiary.
- The move comes months after its affiliate completed Pakistan’s largest initial public offering.
- Proceeds from the IPO will fund the passenger car radial tyre manufacturing project.
Service Industries Ltd. is expanding its tyre business by launching a new wholly owned subsidiary, Service Tyres International (Private) Limited, according to a notice submitted to the Pakistan Stock Exchange.
This development follows the successful listing of Service Long March Tyres Ltd., which became Pakistan’s largest initial public offering (IPO), raising Rs7.78 billion in funds.
The IPO was oversubscribed within seconds, highlighting strong investor interest and marking one of the country's most significant capital market transactions this year.
Service Industries’ existing subsidiary, Service Tyres (Private) Limited, will hold the new entity, which is expected to support the group’s expansion efforts in the tyre sector.
The proceeds from the IPO are being utilized for a passenger car radial tyre manufacturing project, aligning with the company's strategic focus on expanding its product range and market presence.
Service Long March Tyres Ltd. was established as a joint venture between Service Industries and China’s Chaoyang Long March Tyre Co. Ltd., and it listed on the Pakistan Stock Exchange in June after offering a five percent stake to the public.
The company's decision to launch this new subsidiary underscores its commitment to growing its tyre business, leveraging the substantial capital raised through the IPO.
