Finance
Czech billionaire's CSG launches record defence IPO, aiming to raise $4.4 billion
Published by Global Banking & Finance Review®
Posted on January 20, 2026
4 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 20, 2026
4 min readLast updated: January 20, 2026
Czech defence firm CSG is launching a 3.8 billion euro IPO, offering 15.2% of shares to reach a market cap of 25 billion euros.
By Jan Lopatka and Jason Hovet
PRAGUE, Jan 20 (Reuters) - Prague-based Czechoslovak Group (CSG) will float up to a 15.2% stake in its initial public offering, it said on Tuesday, valuing the company's shares at 25 billion euros ($29 billion) in what is set to be the biggest-ever defence sector listing.
The Amsterdam offering aims to raise 3.8 billion euros ($4.4 billion) in gross proceeds, including just under 3 billion euros net for the firm's 33-year‑old owner, Michal Strnad, according to its prospectus.
CSG is one of the world's fastest‑growing defence companies, producing large- and small-calibre ammunition, heavy ground equipment and radars, and expanding into jet engines.
Led by Strnad, whose father began trading old Soviet-era military equipment in the 1990s, CSG announced its intention to float shares last week and is pushing ahead with the deal in a faster-than-standard process.
CSG said the IPO would raise its profile with international investors, boost brand recognition and credibility, and give it greater financial flexibility through wider access to capital.
The offer price is 25 euros per share, the prospectus said.
The offering comprises 30 million new shares and up to 122 million existing shares held by Strnad. The latter part includes an over-allotment option which may be tapped depending on the stock's performance after launch.
BOOKS COVERED, STRONG DEMAND IN DEFENCE SECTOR
Books on the offering were quickly covered on Tuesday, indicating demand exceeding the deal size, a bookrunner said.
European defence stocks have hit record highs as investors pile into the sector following Russia's 2022 invasion of Ukraine and heightened geopolitical tensions from Venezuela to Iran.
If fully exercised, CSG's offering would be the largest Amsterdam listing since KKR Private Equity Investors raised $5 billion in 2006, according to Dealogic.
CSG has been a major supplier of ammunition and military equipment to Ukraine.
Rising global defence spending will continue to support the sector, Barclays analyst Afonso Osorio said.
"Years of under-investment in Europe are long behind us, and the recent escalation between Allies (re. Greenland) should only be seen as a reminder that Europe will have to continue to invest meaningfully," he said.
The company will receive net proceeds of 724 million euros from the sale of new shares.
CSG will use the funds for general corporate purposes. Strnad told Reuters earlier this month that one of the reasons for the listing was to use stock as potential acquisition currency.
Recent acquisitions include its $2.2 billion purchase in 2024 of leading U.S. small ammunition maker Kinetic, owner of brands such as Remington.
CSG had 3.59 billion euros in net debt as of September 2025.
Combined with its equity, that gives CSG an enterprise value of about 17.5 times trailing 12-month core earnings (EBITDA), just above the sector's trailing average, according to Reuters calculations and LSEG data.
Czech brokerage Patria said its 2026 estimates put the EV/EBITDA multiple below 14, calling it "an attractive entry point given the above-average growth outlook and premium operating profitability".
Trading in the shares is expected to start on Friday.
The prospectus showed Strnad owns 99.98% of the firm, with small stakes held by several senior managers. He will retain 84.78% if the full over‑allotment option is exercised.
CSG said in November that revenue would rise to 7.4–7.6 billion euros this year, from more than 6.4 billion expected for 2025, with its operating margin remaining at 24%–25%.
It targets a dividend payout of 30%-40% of net profit, payable from 2027.
($1 = 0.8565 euros)
(Reporting by Jan Lopatka and Jason Hovet. Additional reporting by Charlie Conchie. Editing by Jan Harvey and Mark Potter)
An Initial Public Offering (IPO) is the process through which a private company offers shares to the public for the first time, allowing it to raise capital from public investors.
Market capitalisation is the total market value of a company's outstanding shares, calculated by multiplying the share price by the total number of shares.
Equity shares represent ownership in a company, giving shareholders voting rights and a claim on a portion of the company's assets and earnings.
Explore more articles in the Finance category
