CSG shares on Amsterdam bourse dip to record low of less than EUR23

Amsterdam, March 30 (CTK) - Shares of arms maker Czechoslovak Group (CSG) fell to a record low on the Amsterdam stock exchange today, and after dropping below the IPO price of EUR25 on Friday, they fell further to as low as EUR22.70 today, according to Euronext market data.

The Follow the Money server reports on growing scandals surrounding CSG's share offering. Some were previously highlighted by foreign media, but CSG has denied any wrongdoing.

Shortly before noon, CSG shares were trading in Amsterdam at around EUR23, down 1.4 percent. They fell to a low of EUR22.70 early in the morning. They are now far below their record high of EUR35.50 reached shortly after the IPO.

Czechoslovak Group raised approximately EUR3.8bn (CZK92.2bn) through its share sale at the end of January this year to support its growth as one of the leading arms manufacturers in the European Union. According to analysts, it was the largest-ever IPO by a defence company. However, evidence suggests CSG may have misled investors by downplaying risks and presenting an overly optimistic financial outlook, the Follow the Money website reports.

"Our reporting recently flagged an early warning sign: a Spanish ammunition factory and subsidiary of the Czech defence mammoth was suspended by NATO's procurement agency. There were 'serious allegations' that the subsidiary played a part in a corruption scheme currently under investigation by Belgian authorities, according to documents we obtained," the website said.

The report appeared in foreign media earlier this month. CSG responded at the time, saying there was no discrepancy between its Spanish ammunition factory, Fabrica de Municiones de Granada (FMG), and the NATO Support and Procurement Agency (NSPA).

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