Czechoslovak Group Expands Banking Team as €3 Billion IPO Plans Gain Momentum

Czechoslovak Group AS (CSG), the Prague-based defense and industrial conglomerate, has expanded its lineup of financial advisers as it accelerates preparations for a potential initial public offering (IPO) that could raise as much as €3 billion ($3.5 billion), Bloomberg reported, citing people familiar with the matter.

According to the report, CSG has brought in Commerzbank AG, Deutsche Bank AG, Erste Group Bank AG, and Morgan Stanley to serve in junior advisory roles alongside its existing lead banking partners. The move suggests the company is deepening its collaboration with major financial institutions as it evaluates timing, valuation, and market conditions for what could become one of the largest European defense IPOs in recent years.

The Czech holding, founded by industrialist Michal Strnad, has seen extraordinary growth since Russia’s full-scale invasion of Ukraine in 2022. CSG’s portfolio spans ammunition production, armored vehicles, radar systems, and rail transport — sectors that have all experienced surging demand due to the war and increased defense spending across Europe.

While no final decisions have been made and discussions remain at an early stage, the scale of the potential offering underscores investor appetite for Europe’s rearming industrial base. CSG previously confirmed in its half-year financial results that it is exploring a possible listing, though the timing and structure of any transaction are still under consideration.

If completed, the IPO would mark a significant milestone for the privately-held group, positioning it among Europe’s top publicly traded defense manufacturers and potentially reshaping the regional defense investment landscape.

Source: Bloomberg