CSG's market capitalisation exceeds CEZ, becomes largest in Czechia

Prague, Jan 23 (CTK) - Shares of Czech arms company Czechoslovak Group (CSG) rose so sharply after trading began that its market capitalisation exceeded that of energy group CEZ by more than CZK100bn, and CSG thus became the company with the largest market capitalisation in Czechia, XTB analyst Tomas Cverna told CTK.

The development reflects great interest of retail investors, Cverna said.

CSG shares started trading today on the main market of the stock exchange in Amsterdam, as well as on the Prague Stock Exchange's (BCPP) Free Market, which is not the exchange's main market.

CSG's market capitalisation was CZK754bn before 10:00, while CEZ's was CZK655bn, Cverna said. "CSG is thus one of the largest companies not only on the Prague Stock Exchange, but also in the entire Czech Republic," he said. According to Cverna, CSG, CEZ and Komercni banka are complemented in importance by companies such as PPF, EPH, Skoda Auto and others.

Market capitalisation is the market value of a company, which is calculated by multiplying the current market price of one share by the total number of shares in circulation. It is used to compare the value of companies.

CSG shares showed growth of approximately 30 percent to over EUR32 at the start of trading, according to stock exchange statistics. The company could raise EUR3.3bn to EUR3.8bn (up to CZK92bn) from the share sale.

The company offered 15.2 percent of the shares at EUR25. Analysts had already said before the CSG shares went public that it was likely to be the largest initial public offering (IPO) of arms company shares in history.

CSG's owner Michal Strnad is expected to raise nearly EUR3bn from the share sale, with the rest going to the company, according to the issuer's published prospectus. CSG is one of Europe's leading manufacturers of artillery ammunition. The company expanded in this sector before the full Russian military invasion of Ukraine in 2022.

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