They dress the army, police and even railwaymen. Arlen boldly entered the Polish stock exchange
The course of the Arlen company providing protective clothing and uniforms for the army, police, fire brigade or railwaymen gained 10 percent in the first transactions on the WSE. This is only the second debut on the Main Square this year, but arousing emotions among investors, because it concerns a company from the most hot industry of recent months.
Arlen's shares debuted on the WSE on Tuesday, June 24. The opening rate was PLN 38.50, which meant an increase of 10 percent. Relative to the price from the public offer set at PLN 35. It sold 7.74 million shares worth PLN 271 million, and the entire company was valued at PLN 774.65 million. Existing actions were already offered, belonging to the owners, i.e. the Family Foundation controlled by President Andrzej Tabaczyński.
Although the funds from IPO went to the Foundation, and not directly to the company, the offer met with great interest of both institutional and individual investors, which resulted in a high reduction in retail entries. The tranche for individual investors was only 700 thousand. shares, which translated into a reduction in entries, which amounted to as much as 87 percent.
In the institutional tranche, all shares were covered, and foreign market participants were also among investors. IPO was aimed at increasing the company's recognition, improving transparency, strengthening market position and facilitate the financing of future acquisitions – as President Andrzej Tabaczyński said at a meeting with journalists.
Uniform company
Arlen SA is one of the largest manufacturers of specialist protective clothing in Europe and elements of individual equipment for uniformed services, with a 30-year history of activity. The company has a modern, vertically integrated production base in Poland (four plants, its own laboratory and R&D center) and is one of the few producers in Europe who produce both fabrics and finished products themselves.
Looking at the main markets and customers, we notice that 94 percent Revenues in 2024 came from Poland (including the Polish Army, Border Guard, Police, National Tax Administration, Frontex agency), and exports included Germany, Switzerland, Lithuania and Norway. The company is planning further foreign expansion, especially in Germany and Spain.
As for financial results, in 2024 the revenues amounted to PLN 461.4 million (+26 percent yaws), standardized EBITDA PLN 83.9 million (+45 percent yaws), and a net profit of PLN 60.5 million (+44 percent RDR). The EBITDA margin is systematically growing: in 2022 it amounted to 13.5 percent, in 2023 already 15.8 percent, and in 2024 it was 18.2 percent.
The company is based on many years of contracts with the public sector and foreign uniformed services. In his strategy, he focuses on technological innovation, expanding the product offer, expansion to European markets and developing its own technologically advanced fabrics. The company declares a clear dividend policy in which it intends to pay shareholders between 30 and 50 percent. net profit with the first payment of new shareholders in 2026. Arlen does not exclude the acquisition of other entities.
Hot stock market bull market
The company attracts attention with stable financial results, prospects for further growth and dividend policy. Investors are also attracted by the industry in which the company operates, related to defense and being a beneficiary of increased defense expenses or more broadly.
Until now, we exchanged Lubawa, Zremb, Protector, Vigo System and Creotech Instruments on the WSE among companies associated with production for the army. Production for the army was also declared, among others Wielton or Boryszew. A group of Niewiadów appeared at NewConnect, through the opposite takeover of the Polish Military Group, which obtained financing for the 155mm caliber ammunition project.
The entrance to the WSE Arlen is only the second debut on the Main Square this year (after diagnostic debut). As a 407 company on the WSE, it will be listed under the name Arlen and Ticker Arl. The company's registration country is Poland.
Michał Kubicki
