Czechoslovak Group AS (CSG), the Czech arms manufacturer and a major private defense company in Europe, is contemplating an initial public offering (IPO) that might value the firm at over €30 billion.
Based in Prague, CSG is recognized for its heavy ammunition and armored vehicles, including the Pandur 8×8 EVO. The company is reportedly in the initial stages of appointing banks for the potential listing, but a CSG spokesperson did not provide comments on these plans.
Since its founding in 1995, CSG has experienced significant growth, fueled by shifts in Europe’s defense priorities following Russia’s invasion of Ukraine in 2022. Its 2024 annual report shows that 42.8% of its revenue last year came from Ukraine, with over one million units of artillery ammunition supplied, much under a Czech government initiative.
Last year, CSG achieved €4 billion in annual revenue.
With European governments committing to increased long-term defense spending, investor interest in the defense sector is rising. A successful IPO could make CSG a significant publicly traded entity.
Other companies, like KNDS NV, the Franco-German venture behind the Leopard tank, are also eyeing public listings. Defense firms have generally outperformed European equities since 2022 due to geopolitical factors and rising public sector procurement.
A CSG IPO would be a notable event for Europe’s capital markets, which have seen low issuance in recent years due to economic uncertainty and changing interest rates.
CSG is also expanding via acquisitions, having purchased U.S. ammunition producer Kinetic Group for over $2 billion last year and explored acquiring the defense unit of Italy’s Iveco Group NV.