Czech ammunition-maker CSG plans Amsterdam flotation to tap into global defense surge

Czech defense firm Czechoslovak Group, CSG, plans to float existing and new shares on Euronext Amsterdam, it said on Wednesday (January 14), in what may be one of Europe's biggest initial public offerings this year.

CSG, one of the world's fastest-growing defense firms, said the offering was expected to take place in the coming weeks and would consist of new shares for 750 million euros ($873.60 million) and an amount of existing shares to be determined at a later stage.

Europe's defense stocks have scaled record highs as governments and investors pour money into the sector following the 2022 invasion of Ukraine and rising global unrest from Venezuela to Iran.

Sources, asking not to be named, have told Reuters the IPO could raise more than 3 billion euros. That would make CSG Amsterdam's largest IPO since InPost in 2021, which raised $3.9 billion, according to Dealogic data.

CSG, whose customers include the Ukrainian military, will use proceeds from the sale of new shares for general corporate purposes, it said.

Chair and current sole owner Michael Strnad told Reuters before the filing that CSG was considering listing 15% of its shares in the deal, though no decision had yet been made.

Strnad said in a statement on Wednesday the group has grown organically and through acquisitions, and would benefit from the acceleration in global defense spending.

NATO countries have increased defense spending and investor interest has surged in the sector since U.S. President Donald Trump returned to office at the start of last year and began shaking up international relations.

A number of other European defense companies including Franco-German tank maker KNDS are also exploring listings this year.

Strnad, 33, has rapidly grown the business set up by his father and given CSG a global footprint, including through the $2.2 billion purchase of U.S. small ammunition maker Kinetic.

CSG's revenue rose to 4.5 billion euros in the first nine months of 2025, an 82% year-on-year rise on a pro-forma basis, while operating earnings before interest, tax, depreciation and amortization increased 79% to 1.2 billion euros.

It said on Wednesday it would target a dividend payout of 30-40% of net profit, payable from 2027.

Production: Radovan Stoklasa, Anna Lubowicka/Reuters