Czech-based defence company Czechoslovak Group (CSG) is reportedly planning to commence trading on the Euronext exchange in Amsterdam this Friday. According to sources familiar with the matter, this initial public offering (IPO) is poised to be the largest global defence listing in terms of funds raised. CSG specialises in manufacturing ammunition, armoured vehicles, and artillery.
Last week, CSG announced its IPO would involve 750 million euros (approximately $873.60 million AUD) in newly issued shares, along with an unspecified quantity of existing shares. Initial reports suggested the IPO could potentially raise over 3 billion euros ($3.50 billion AUD). One source indicated that books were expected to open on Tuesday and close on Thursday, indicating an accelerated timeline compared to the typical three-to-four-week IPO process.
European defence stocks have recently reached record highs, fuelled by increased investor interest following the 2022 invasion of Ukraine and escalating global tensions. A successful listing by CSG could mark the largest Amsterdam IPO since InPost’s $3.9 billion offering in 2021. CSG had previously mentioned considering listing 15% of its shares. Bloomberg reported the offering could value the firm at about 25 billion euros.
CSG announced receiving cornerstone commitments totalling 900 million euros from Artisan Partners, BlackRock, and Al-Rayyan (a subsidiary of Qatar Investment Authority). These commitments are contingent upon the IPO’s successful completion. The company is recognised as one of the fastest-growing defence firms worldwide.
