GDANSK (Reuters) -Shares of Polish protective clothing maker Arlen Group rose 10% on their stock market debut on Tuesday, marking Warsaw's second initial public offering (IPO) this year. The company
Poland's Arlen debuts 10% above IPO price in Warsaw
GDANSK (Reuters) -Shares of Polish protective clothing maker Arlen Group rose 10% on their stock market debut on Tuesday, marking Warsaw's second initial public offering (IPO) this year.
The company had priced its IPO at 35 zlotys per share, raising 270.9 million zlotys ($73.7 million) and giving it a valuation of 775 million zlotys. Tuesday's debut price of 38.5 zlotys increased the company's valuation to 852.1 million zlotys.
Arlen Group is a manufacturer of protective clothing and individual equipment for uniformed services. In early June, during a discussion with investors, CEO Andrzej Tabaczynski said the company expects demand for its products to grow as Poland boosts spending on enhancing soldiers' equipment.
Defence spending in Poland and across Europe has been rising amid heightened geopolitical tensions and concerns over potential Russian aggression, with NATO leaders agreeing to spend 5% of their GDP on defence and security measures.
Arlen's IPO is the second on the Polish bourse's main market this year, following medical diagnostics company Diagnostyka's 1.7 billion zloty share sale in January.
Last year, the company's revenue rose 26% year-on-year to 461.4 million zlotys ($123.1 million), primarily due to a large number of tenders won, mainly those announced by the Polish Army. EBITDA profitability in the last three years was between 13% and 15%.
($1 = 3.6746 zlotys)
(Reporting by Marta Maciag; Editing by Matt Scuffham)
