AMSTERDAM, Jan 23, 2026, 11:41 CET
- CSG shares jumped up to 32% following the pricing at 25 euros per share
- The IPO brought in 3.3 billion euros, with potential to climb to roughly 3.8 billion euros if the over-allotment option is exercised
- The debut rides a surge in European defence stocks, driven by governments boosting budgets and replenishing arsenals
Shares of Czech defence company Czechoslovak Group (CSG) surged as much as 32% on Friday during their Amsterdam market debut, following a record-breaking IPO. By 0812 GMT, the stock traded 20.9% higher at 30.235 euros, after launching at 25 euros per share. The deal valued the Prague-based group at 25 billion euros and raised up to 3.8 billion euros. Reuters
The float arrives as investors pile into European defence stocks, wagering that governments will keep boosting weapons stockpiles and budgets amid the ongoing conflict in Ukraine. The Stoxx Europe Aerospace and Defence index has surged more than 10% in January, following a 57% jump in 2025, the Financial Times reported. It highlighted Rheinmetall’s 154% gain last year. Ft
In a €3.3 billion deal, owner Michal Strnad offloaded €2.55 billion worth of shares, while the company itself pulled in €750 million. More shares could hit the market if banks opt to exercise an over-allotment option. “Today marks a historic milestone for CSG,” Strnad said. Raphael Thuin, head of capital markets strategies at Tikehau Capital, added, “The investment case for European defence companies remains robust, with recent debates around Nato and Greenland only intensifying interest in the sector.” Theedgesingapore
An initial public offering, or IPO, marks a company’s debut share sale on a stock exchange. CSG offered up to 15.2% of its stock, mixing 30 million new shares with as many as 122 million existing shares sold by Strnad. Barclays analyst Afonso Osorio noted, “Years of under-investment in Europe are long behind us.” Czech brokerage Patria valued the 2026 EV/EBITDA multiple at under 14 — a ratio comparing enterprise value, including debt, to earnings before interest, taxes, depreciation, and amortization — calling it “an attractive entry point given the above-average growth outlook and premium operating profitability.” Reuters
CSG, trading on Euronext Amsterdam under the ticker CSG, set its IPO price at 25 euros, according to the exchange’s IPO showcase page. ING Bank is acting as the sponsor. Euronext
Artisan Partners, BlackRock, and Al-Rayyan Holdings—a branch of Qatar Investment Authority—stepped in as cornerstone investors, each snapping up 300 million euros. These heavyweight buyers commit ahead of trading. According to a bookrunner, order books filled rapidly earlier this week.
CSG produces both large- and small-calibre ammunition, armoured vehicles, and radars, and has been a key supplier of military gear to Ukraine. Strnad noted the listing would provide the group with stock to fund acquisitions; in 2024, it acquired U.S. small-ammunition maker Kinetic for $2.2 billion, bringing brands like Remington into its portfolio.
CSG’s prospectus projects revenue between 7.4 billion and 7.6 billion euros this year, climbing from over 6.4 billion euros anticipated in 2025, alongside an operating margin of 24% to 25%. As of September 2025, the company reported net debt at 3.59 billion euros and aims for a dividend payout ratio of 30% to 40% starting in 2027.
CSG’s debut is now a benchmark for other defence-related listings set to hit European markets, such as Franco-German tankmaker KNDS and Britain’s Doncasters Group. Bankers note the pipeline is still thin, which adds to the sector’s lure for investors eager to get in.
Still, the sector’s rally might hit a wall. Defence budgets shift with politics, and any dip in demand—or a change in the Ukraine conflict—could pressure orders, margins, and valuations for the new stock. On top of that, CSG’s heavy debt leaves little margin for error.
