Service Industries Limited has announced that its subsidiary, Service Long March Tyres Limited (SLM), has filed a prospectus with the Pakistan Stock Exchange (PSX) for the listing of its shares. The company stated that “Service Long March Tyres Limited (SLM) has filed its Prospectus with Pakistan Stock Exchange Limited for the listing of shares,” according to a disclosure submitted to regulators on Tuesday. SLM plans to raise between Rs5.6 billion and Rs7.8 billion through an initial public offering (IPO), offering 389.7 million ordinary shares at a floor price of Rs14.25 per share.

The offering represents a 5% stake in the company post-listing, according to the disclosure. The proceeds from the IPO will be used to finance a passenger car radial tyres project, with an estimated total cost of Rs22.5 billion. The company noted that “the remaining funding requirements will be met through long-term financing and SLM’s internal cash flows.” The development follows earlier communication by the company and marks a step towards bringing the tyre manufacturing project to the capital markets.