Czechoslovak Group (CSG), a pivotal provider of ordnance to Ukraine and the fastest expanding defense firm in Europe, successfully finalized its initial share sale (IPO) and commenced trading on Euronext Amsterdam on January 23rd. The share sale could generate up to €3.8 billion, establishing it as one of the most substantial IPOs in the European defense domain recently.
CSG NV equities were priced at €25 apiece and are traded on Euronext Amsterdam’s regulated market under the symbol CSG. The aggregate earnings from the share sale equate to 15.2% of the company's stock after settlement, enabling the group to considerably bolster its capitalization and fiscal standing. Anchor investors played a crucial part in the IPO’s triumph, affirming involvement totaling €900 million. Among these are Artisan Partners, funds overseen by BlackRock, as well as Al-Rayyan Holding, a division of the sovereign wealth fund Qatar Investment Authority.
Michal Strnad, CSG’s Chairman of the Board, described the company's IPO as a “landmark event.” He stated that the publicly traded status broadens the group’s access to global capital, enhances monetary adaptability, and unlocks novel avenues for investments in advancement, manufacturing upgrades, and continued worldwide expansion.
CSG ranks among the largest defense industry conglomerates in Europe, with its headquarters situated in Prague. The group’s manufacturing and technological assets are located in the United States, the United Kingdom, Germany, Italy, Spain, the Czech Republic, Slovakia, Serbia, Greece and India. The firm specializes in the manufacture of ordnance, ground weapon systems, defense electronics, and radar solutions.
The group structure encompasses significant entities such as Tatra Trucks (Czech Republic), MSM Group (Slovakia, artillery ordnance), The Kinetic Group (USA, small-caliber ordnance) and Eldis (Czech Republic, radar systems). Overall, CSG incorporates more than 14,000 individuals across integrated and affiliated enterprises.
As per the SIPRI think tank, CSG demonstrated the most elevated revenue growth rate among the world's 100 largest defense companies in 2024, nearing 200%, whereas the average growth rate for European arms manufacturers stood at approximately 13%. The group’s consolidated income in 2024 reached €4 billion, reflecting the notable surge in demand for defense products in Europe and beyond.
CSG’s collaboration with Ukraine holds particular strategic significance. The group actively engages in the provision of large-caliber ordnance within the framework of the Czech initiative aimed at supplying Ukraine with ammunition (Czech Ammunition Initiative). In October 2024, CSG inked a deal with the Ukrainian Armored Company concerning the collaborative production of 155-mm artillery shells in Ukraine starting in 2025. According to projections, the production volume in 2025 should reach 100,000 shells, and from 2026 onward, exceed 300,000 units annually, which will considerably reinforce Ukraine’s defense capabilities and the degree of production localization.
Source: forbes.ua