Finance
Exclusive-Czech defence firm CSG nears IPO decision that would boost M&A war chest
Published by Global Banking & Finance Review®
Posted on January 7, 2026
3 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 7, 2026
3 min readLast updated: January 20, 2026
Czech defence firm CSG is considering an IPO to fund future acquisitions, potentially listing in Amsterdam, amid rising interest in defence stocks.
PRAGUE, Jan 7 (Reuters) - Czech arms and ammunition firm Czechoslovak Group (CSG) has discussed with banks floating around 15% of its shares in a potential initial public offering, with a decision yet to be reached, owner and Chair Michal Strnad told Reuters.
Strnad said being publicly traded would offer CSG the option to finance with its shares future acquisitions in a sector that has witnessed a slew of deals.
He added that banks were recommending listing around 15% of the company.
"It depends on many factors but I'm listening to them carefully and forming my own opinion," he told Reuters at CSG's headquarters in Prague. The proposed size of the potential flotation has not previously been reported.
CSG is Europe's fastest-growing defence firm in terms of annual revenue growth in a global arms market worth $2.7 trillion in 2024, according to the latest data from the Stockholm International Peace Research Institute.
DEFENCE STOCKS IN DEMAND
The sector's fast growth and increased NATO spending in the wake of Russia's war in Ukraine have prompted other defence companies including Franco-German tank maker KNDS to pursue IPOs to tap into strong investor interest in defence stocks.
BNP Paribas, Jefferies, JPMorgan, and UniCredit were the global coordinators for CSG's potential IPO, Strnad said, confirming earlier source-based reporting from Bloomberg.
The decision whether to go ahead with the IPO, likely set for Amsterdam, could be in the near future, he said.
RUBBING SHOULDERS WITH EUROPEAN DEFENCE GIANTS
Strnad declined to comment on how much the company could raise in any IPO or at what valuation, but cited German defence giant Rheinmetall as a guide.
"Look at our results, compare them with our natural European peer, which you know who it is, and add a discount because it is an IPO, you don't have the German army (as customer), and this will get you somewhere," Strnad said.
"But of course, we don't expect a valuation like Rheinmetall's."
If CSG was valued using Rheinmetall as a guide, it could have an enterprise value between 34 billion and 50 billion euros, before applying any discount, according to Reuters calculations based on LSEG data. Valued close to the sector average, CSG would be worth around 22 billion euros, the calculations show.
Rheinmetall's enterprise value of 21 times next 12-month earnings before interest, taxes, depreciation and amortisation (EBITDA), according to LSEG data, is well above the industry median of 13.7.
Bloomberg has previously reported a targeted valuation of 30 billion euros for CSG, citing sources.
SHARES COULD FUND FUTURE M&A
Strnad, 33, has rapidly grown the business set up by his father, giving CSG a global footprint, including the $2.2 billion purchase of U.S. small-ammunition maker Kinetic.
An IPO - which would likely offer a combination of existing and new shares - would improve the company's appeal to customers and provide an additional tool in its M&A armoury.
"I want to have the option of potentially using shares as currency for potential acquisitions," he said.
CSG is considering a single Amsterdam listing, though a secondary listing in Prague remained a possibility at a later stage, he added.
The firm is one of Europe's leading producers of munitions for artillery, having expanded in that segment even before Russia's full-scale invasion of Ukraine in 2022.
($1 = 0.8550 euros)
(Reporting by Jan Lopatka and Michael Kahn; Writing by Jan Lopatka; Editing by Adam Jourdan, Anousha Sakoui and Emelia Sithole-Matarise)
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.
Valuation is the process of determining the current worth of an asset or company, often used to assess investment opportunities or for mergers and acquisitions.
The defense industry encompasses companies and organizations involved in the production of weapons, military technology, and services related to national defense.
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