Service Industries Ltd. plans to establish another wholly owned tyre subsidiary, months after its affiliate pulled off Pakistan’s largest initial public offering.
The new entity, Service Tyres International (Private) Limited, will support the expansion of the group’s tyre business, the company said in a notice to the Pakistan Stock Exchange. Service Industries’ existing wholly owned unit, Service Tyres (Private) Limited, will hold the new subsidiary.
The move follows the listing of Service Long March Tyres Ltd. in what became Pakistan’s biggest-ever IPO. The company raised Rs7.78 billion, with the book-building phase oversubscribed within seconds amid overwhelming investor demand.
The proceeds are being used to establish a passenger car radial tyre manufacturing project.
SLM is a subsidiary and associated company of Service Industries, established as a joint venture with China’s Chaoyang Long March Tyre Co. Ltd.
The company listed on the PSX in June after offering a five percent stake to the public, marking one of the country’s most significant capital market transactions in recent years.
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