Czech billionaire’s CSG launches a record IPO

The Czechoslovak group CSG, based in Prague, is poised to make history in the defense sector with the launch of a record-breaking initial public offering (IPO). The operation, involving a 15.2% stake in the company, aims to raise 3.8 billion euros and achieve a market capitalization of 25 billion euros. This is one of the largest IPOs ever conducted in the global defense sector, as well as the most significant listing in Amsterdam since 2006.

A Rapidly Rising Giant

CSG is currently one of the fastest-growing defense companies in the world. The group manufactures ammunition, radar, and heavy equipment of various calibers, and in recent years has expanded its reach into the jet engine sector. The company is controlled by the young billionaire Michal Strnad, 33 years old, son of the founder who started in the 1990s by trading old Soviet-era military equipment.

The growth of CSG has been driven by an increasingly strong demand for defense systems, fueled by international tensions and the conflict in Ukraine. The company announced its intention to go public just last week, accelerating the timeline compared to market norms.

The Details of the Operation

According to the prospectus, the price set for the offering is 25 euros per share. The IPO involves the issuance of 30 million new shares and the sale of up to 122 million existing shares, including those subject to the over-allotment option: a clause that allows for price stabilization of the securities if necessary. The majority of the shares for sale come from the direct divestment by Michal Strnad, who held 99.98% of the company before the transaction.

If the over-allotment option is fully exercised, Strnad will still retain an 84.78% stake in the company, while the remainder will be distributed among new investors and some senior executives.

Strong Demand and Favorable Context

The order books are already covered, indicating that investor demand exceeds the size of the deal. The European defense sector is experiencing a period of significant interest: the stocks of companies in the sector have reached all-time highs following the Russian invasion of Ukraine in 2022 and the rise in tensions in areas such as Venezuela and Iran.

The IPO of CSG represents the largest listing in Amsterdam since KKR Private Equity Investors in 2006, when 5 billion dollars were raised. In the event of full exercise of the over-allotment option, Strnad is expected to net nearly 3 billion euros, while the company will receive 724 million euros intended to finance general corporate activities.

Financial and Strategic Outlook

As of September 2025, CSG recorded a net debt of 3.59 billion euros. The company plans to use the proceeds from the IPO to strengthen its financial position and support future growth. According to estimates published in November, revenues are expected to rise to 7.4-7.6 billion euros during the year, compared to the 6.4 billion projected for 2025. The operating margin is expected to remain between 24% and 25%.

CSG has also announced its intention to distribute dividends amounting to 30-40% of net profit, with the first payments expected to begin in 2027.

A New Face for European Defense

The stock market debut of CSG represents a strong signal for the European defense sector, which is at the heart of a transformation phase and renewed interest from international investors. The listing in Amsterdam, scheduled for Friday, will provide the company with greater international visibility, strengthening the brand and the group’s credibility.

The operation will also provide CSG with greater financial flexibility and the ability to access a wider range of capital-raising options, which are essential elements to support expansion in an increasingly competitive and strategic market.

Conclusions: A Bet on the Future of Security

The IPO of CSG marks a pivotal moment for the defense sector, both in Europe and globally. The success of the offering, supported by demand exceeding expectations, confirms the centrality of defense companies in the new geopolitical landscape. With a market capitalization of 25 billion euros and a fundraising of 3.8 billion euros, CSG positions itself to become one of the leading global players in the sector, ready to seize the challenges and opportunities of the coming years.