Relationships with debuts

The company KUBOTA S.A. was newly listed on NewConnect on 21 November 2022

KUBOTA S.A. is the 379^th company listed on NewConnect and the 14^th new listing on NewConnect in 2022. 

Key information

*at the reference price of series A, B, C and D shares proposed by the AA and MM equal to PLN 13.00

Issuer’s history and business

1994 – the Kubota brand was born. The first Kubota Velcro foam flip-flops arrived in Poland from China. During the period, the Issuer did not own the Kubota brand.

May 2018 – incorporation of Dahapi sp. z o.o. (original name of the Issuer, subsequently changed to Kubota Wear sp. z o.o. operating as a limited liability company, and later to Kubota S.A. operating as a joint-stock company).

In 2018, the Kubota brand was reactivated by Alina Sztoch, Joanna Kwiatkowska, Piotr Kwiatkowski and Wacław Mikłaszewski, all currently associated with the Issuer.

January 2019 – sale of the Issuer’s products under the name Dahapi sp. z o.o. and change of the company name to Kubota Wear sp. z o.o. The Company became the exclusive owner of the Kubota trademark. Dorota and Wiesław Michalski and Piotr Krawczyk, all associated with the creation of the Kubota brand, joined the company.

Kubota S.A. (previously as a limited liability company under the names Dahapi Sp. z o.o. and Kubota Wear Sp. z o.o.) has operated its core business in the consumer goods market in the retail and wholesale segment of clothing, accessories and footwear since 2019. The Issuer imports most of the goods it sells from Asia.

Sales in the retail segment are mainly based on volumes generated by ecommerce using the company’s own online shop (www.kubotastore.pl) and third-party platforms (including Allegro, Decathlon, Amazon.de, Amazon.pl, Empik and Volt), accounting for 47% of turnover in 2020, 32% in 2021, and 21% in H1 2022. A smaller proportion of retail revenue is generated by classic stationary sales (1 stationary shop, 1 shopping island). Wholesale is divided into sales of non-personalised and personalised products. The Issuer is intensively developing the clothing segment, as demonstrated among others by the launch of a joint collection with Reserved, a brand owned by LPP S.A., and an increase in the share of clothing in total revenues from 2% in 2021 to 7% in H1 2022.

Kubota’s most important product lines from the point of view of revenue generation include flip-flops (including mainly Rzep and Basic flip-flops) and socks. In June 2021, the Issuer launched its first collection of apparel, including sweatshirts, t-shirts and tracksuits. June 2022 saw the launch of the latest unisex collection consisting of clothing, flip-flops and accessories.

As the Issuer conducts sales mainly through the online and wholesale channel, the Issuer does not incur high costs of the maintenance of stationary points of sale, including in particular costs of the lease of commercial space and employment of personnel in stationary points of sale.

Issuer’s selected financials (PLN):

Public offering of series D shares

Subscription dates:

Start date: 9 August 2021

End date: 6 September 2021

Number of shares in the subscription: 192,307 shares

Number of allotted shares: 191,922 shares

Issue price: PLN 13.00

Number of persons who subscribed for and took up the shares: 156 (including 4 related parties who jointly took up 21,597 series D shares representing 11.25 % of all series D shares)

Issue value: PLN 2,494,986

In the offering of series D shares, the Company raised almost PLN 2.5 million gross. The primary objective of the issue of series D shares was to increase the level of inventories, for which the company allocated PLN 1.75 million. The remaining funds were invested in the development of a team of experienced and competent marketing, sales and logistics staff (PLN 0.5 million) and the development of www.kubotastore.pl with new functionalities, optimisation of the portal in terms of speed and UX, creation of an English language version and the B2B platform (PLN 0.25 million). The Issuer completed all objectives of the issue.

Issuer’s shareholders:

Source: Issuer