AMSTERDAM, Jan 23, 2026, 11:41 CET
- CSG shares surged as much as 32% after pricing came in at 25 euros per share
- The IPO raised 3.3 billion euros, and could reach about 3.8 billion euros if the over-allotment option is fully utilized
- The debut taps into a rally in European defence stocks, sparked by governments ramping up budgets and restocking arsenals
Shares of Czech defence firm Czechoslovak Group (CSG) jumped as much as 32% on Friday in their Amsterdam debut, following a record-setting IPO. By 0812 GMT, the stock was up 20.9% at 30.235 euros, after opening at 25 euros per share. The offering valued the Prague-based company at 25 billion euros and raised up to 3.8 billion euros. 1
As investors rush into European defence stocks, betting on sustained government spending amid the Ukraine conflict, a new float emerges. The Stoxx Europe Aerospace and Defence index jumped over 10% in January, building on a 57% surge in 2025, according to the Financial Times. The report singled out Rheinmetall, which soared 154% last year. 2
Michal Strnad sold €2.55 billion worth of shares as part of a €3.3 billion deal, with the company itself raising €750 million. Banks may add more shares to the market if they exercise an over-allotment option. “Today marks a historic milestone for CSG,” Strnad said. Raphael Thuin, head of capital markets strategies at Tikehau Capital, noted, “The investment case for European defence companies remains robust, with recent debates around Nato and Greenland only intensifying interest in the sector.” 3
An IPO signals a company’s first share sale on a stock exchange. CSG floated up to 15.2% of its stock, combining 30 million new shares with as many as 122 million existing shares sold by Strnad. Barclays analyst Afonso Osorio remarked, “Years of under-investment in Europe are long behind us.” Czech brokerage Patria pegged the 2026 EV/EBITDA multiple at under 14—a measure of enterprise value including debt against earnings before interest, taxes, depreciation, and amortization—calling it “an attractive entry point given the above-average growth outlook and premium operating profitability.” 4
CSG, listed on Euronext Amsterdam with the ticker CSG, priced its IPO at 25 euros, the exchange’s IPO showcase page shows. ING Bank is the sponsor. 5
Artisan Partners, BlackRock, and Al-Rayyan Holdings, part of the Qatar Investment Authority, each took a 300 million euro slice as cornerstone investors. Their commitments came before trading kicked off. A bookrunner said order books flooded in swiftly earlier this week.
CSG makes both large- and small-calibre ammunition, armored vehicles, and radars. It’s been a major military gear supplier to Ukraine. Strnad said the listing would give the group capital to finance acquisitions. In 2024, it snapped up U.S. small-ammunition maker Kinetic for $2.2 billion, adding brands such as Remington to its lineup.
CSG’s prospectus forecasts revenue hitting between 7.4 billion and 7.6 billion euros this year, up from just over 6.4 billion euros expected in 2025. The company also targets an operating margin ranging from 24% to 25%. By September 2025, net debt stood at 3.59 billion euros, with a dividend payout ratio planned between 30% and 40% beginning in 2027.
CSG’s debut has become a reference point for upcoming defence listings in Europe, including Franco-German tankmaker KNDS and Britain’s Doncasters Group. Bankers say the pipeline remains sparse, boosting appeal for investors keen to jump in early.
The sector’s rally could stall. Defence budgets fluctuate with political winds, and any drop in demand or a shift in the Ukraine conflict might squeeze orders, margins, and valuations for the new stock. Add to that CSG’s significant debt load, which leaves little room for mistakes.
