Service Long March Tires IPO sold out in 5 seconds, experts demand more companies to be brought in

An unusual event took place at the Pakistan Stock Exchange. The Rs 5.8 billion IPO, comprising 75 percent of the shares of Service Long March Tires, was fully subscribed in just five seconds, a record in the history of PSX. Experts say that this extraordinary response proves that there is immense demand for quality corporate investment in Pakistan, but no supply.

Experts have demanded that the government take immediate steps to get more companies listed on the PSX. According to them, listed companies are obliged to present financial records to the public and regulatory bodies, which discourages tax evasion and fake accounts. This is an effective way to document the economy and increase the tax net.

Experts also said that a strong stock market can divert capital from unproductive sectors like plots, fake schemes and Crypto and divert it towards industry and production. The tax exemptions given to IPO companies a few years ago had boosted investment and experts want those incentives to be brought back.

However, experts also warned that the desire for IPOs alone is not enough. This journey will be incomplete without economic stability, consistent policies, tax reforms, and digitalization.