CSG Nears Partial IPO to Supercharge M&A Firepower
Czech defence giant Czechoslovak Group (CSG) is considering a partial IPO that could see around 15% of its shares floated, giving the fast-growing company new firepower for acquisitions as Europe’s defence sector accelerates consolidation.
Prague, Jan 7 — Czech defence and ammunition group Czechoslovak Group (CSG) is nearing a strategic decision on a potential initial public offering that could significantly expand its ability to pursue acquisitions across Europe and beyond.
Speaking at the company’s headquarters in Prague, owner and chairman Michal Strnad confirmed that discussions with international banks have included floating roughly 15% of CSG’s shares, though no final decision has been taken.
According to Strnad, advisers have argued that a public listing would not only broaden the group’s investor base, but also provide CSG with an additional strategic tool: equity-financed acquisitions.
“It depends on many factors, but I am listening carefully and forming my own opinion,” Strnad said, adding that being publicly traded would allow CSG to potentially use shares as currency in future M&A deals.
Defence Stocks Back in Favour
The timing reflects strong momentum in global defence markets. Rising NATO defence budgets following Russia’s invasion of Ukraine have driven renewed investor appetite for defence equities, prompting several European manufacturers to explore stock market listings.
Among them is Franco-German armored vehicle producer KNDS, highlighting a broader trend of defence firms seeking public capital to scale production and consolidate fragmented supply chains.
CSG’s growth profile stands out. According to data from the Stockholm International Peace Research Institute, the company ranks as Europe’s fastest-growing defence firm by annual revenue growth within a global arms market estimated at $2.7 trillion in 2024.
Banks Line Up for Potential Listing
Strnad confirmed that BNP Paribas, Jefferies, JPMorgan, and UniCredit are acting as global coordinators for the potential IPO, corroborating earlier market reports. A decision could come in the near term, with Amsterdam emerging as the most likely primary listing venue. A secondary listing in Prague remains a longer-term option.
Valuation: Rheinmetall as a Reference Point
While declining to comment on target valuation or fundraising size, Strnad pointed to Germany’s defence heavyweight Rheinmetall as a natural benchmark — albeit with caveats.
“Compare the results, apply a discount because this would be an IPO, and because we don’t have the German army as a domestic customer,” he said. “That will get you somewhere — but we don’t expect a Rheinmetall-level valuation.”
Based on public multiples, analysts estimate that valuing CSG strictly in line with Rheinmetall could imply an enterprise value between €34 billion and €50 billion before discounts. Using sector-average multiples would suggest a valuation closer to €22 billion. Previous market reporting has cited a potential target valuation of around €30 billion.
Built for Scale
Under Strnad’s leadership, CSG has transformed into a global defence group with strong positions in artillery ammunition, land systems, and military vehicles — expanding capacity even before the outbreak of full-scale war in Ukraine. The company’s recent $2.2 billion acquisition of U.S. small-calibre ammunition producer Kinetic underscored its ambition to build a transatlantic industrial footprint.
An IPO, Strnad said, would strengthen CSG’s credibility with customers, suppliers, and governments — while ensuring the group is equipped to act decisively as consolidation in Europe’s defence industry accelerates.
For now, the decision remains open. But if CSG does move ahead, it would mark one of the most consequential defence listings in Europe in recent years — and signal that the continent’s re-industrialisation of defence is entering a new financial phase.
