Czech Arms Maker CSG Soars to $35 Billion Valuation on Trading Debut

The Czechoslovak Group (CSG) made headlines with its debut on the Euronext Amsterdam stock exchange, achieving a remarkable valuation of $35 billion. This initial public offering (IPO), held on January 23, 2026, attracted significant attention, primarily due to the soaring demand for defense stocks amid increasing military budgets across Europe.

Significant IPO Details

CSG, a leading ammunition and arms manufacturer owned by Czech billionaire Michal Strnad, raised up to €3.8 billion through the IPO. The company sold 30 million new shares and up to 122 million existing shares, all priced at €25 each. This offering represented about 15.2% of the company’s equity.

Market Performance

On its debut day, CSG’s shares surged by as much as 32%, closing at €32.85. This increase propelled the company’s market capitalization to around €33 billion, surpassing major players like Czech utility CEZ, the country’s largest publicly traded firm.

Context of the Defense Sector

The booming interest in defense stocks is largely attributed to heightened military spending across Europe, especially following the geopolitical tensions that escalated after Russia’s invasion of Ukraine. Investors are keen on this sector, driving share values to record highs.

Future Prospects

With this substantial influx of capital, CSG aims to utilize its newly acquired stock as leverage for potential acquisitions. Recently, the company acquired the U.S. ammunition maker Kinetic for $2.2 billion in 2024. Looking ahead, Strnad mentioned that CSG anticipates revenue growth, projecting earnings of €7.4 to €7.6 billion for 2026, a notable increase from the expected €6.4 billion for 2025.

Investor Interest and Demand

• The IPO was more than ten times oversubscribed.
• Funds from notable investment firms, including Artisan Partners and BlackRock, pledged €300 million each to anchor the deal.
• This listing marks the largest defense IPO since KKR Private Equity Investors raised $5 billion in 2006.

CSG’s rapid ascent in the defense sector positions it as one of the world’s fastest-growing companies in this field, catering to key clients including military operations in Ukraine. As European governments continue to increase defense budgets, the future of CSG looks promising, with plans for a dividend payout of 30% to 40% of net profits beginning in 2027.