Niewiadów Polska Grupa Militarna (NPGM), a manufacturer of weapons and military equipment, on May 12 kicked off efforts to raise PLN200mn-220mn (€47.1mn-51.8mn) from a share issue to finance its transformation into a European defence industry player.

The company debuted on the Warsaw Stock Exchange's (WSE's) main market on April 21, moving from its alternative market NewConnect, where it was one of the biggest companies both in terms of market capitalisation and revenues.

"Our goal is not merely to carry out successive projects, but to build an independent regional leader that will tangibly strengthen Poland's security and Nato's industrial potential. The capital raised will allow us to move into a phase of intensive scaling of production capacity, expansion of our R&D facilities, and increased self-reliance in the supply chain. By combining these efforts with infrastructure consolidation, we are creating a private, national champion of the defence sector," CEO Adam Januszko was quoted as saying in a press release.

"Already, as we enter a phase of dynamic growth, we are seeing clear interest from institutional investors, which we view as confirmation of the company’s credibility and competence," he added.

In order to implement its investment plans, the company's extraordinary general meeting will be held on June 8 to vote through an increase of its share capital.

"To ensure adequate liquidity of the shares for investors and enhance the attractiveness of the offering, the major shareholder (an entity owned by Elżbieta Lubińska) will first sell over 12mn existing shares through an accelerated book-building (ABB) process. Subsequently, all funds raised in this manner will be allocated in full by the major shareholder to subscribe for new NPGM shares," the release reads.

The major shareholder has already committed to subscribing for all shares in the new issue by signing an investment agreement with the company.

"In practice, this means that the capital raised from investors will go directly to the company and will be used to implement its growth plans. This transaction structure underscores the majority shareholder's commitment to NPGM's continued growth and demonstrates their support for the strategy of building a strong player in the defence sector," it adds.

The company plans to allocate the issue's proceeds to the launch of new products, the expansion of production capacity, M&A investments, the purchase of land, and the modernisation of its existing production infrastructure.

Its foundations for growth are the production of 155 mm and 40 mm ammunition, mine systems, as well as its research and development centre.

"The key driver of NPGM’s value is the construction of a 155 mm artillery ammunition factory (Nato standard), with mass production set to begin as early as the fourth quarter of 2026 and a target annual output of 180,000 units. At the same time, thanks to a 30-year exclusive license from the global leader in the defence sector - Singapore-based ST Engineering - NPGM is becoming a key European production centre for 40 mm ammunition, with serial production scheduled to begin in mid-2027," the release says.

The portfolio is complemented by the mass production of mine systems for, among others, the Tarcza Wschód (Eastern Shield) programme, where production capacity is estimated at 1mn units per year, and the launch of serial production is planned for Q4 2026.

Funding totaling PLN320mn has already been fully secured for the 155 mm and 40 mm ammunition projects, while mine production is being financed with the group's own funds, the firm added.

NPGM develops technologies in collaboration with Polish research institutes and international partners including ST Engineering, Rheinmetall, Northrop Grumman, KNDS, Junghans Defence, Explosia, VOP Nováky, MSM Group, and Myers Scepter.