Czech arms firm CSG raises EUR3.8bn in Amsterdam stock debut

Prague, Jan 23 (CTK) - Czech arms company Czechoslovak Group (CSG) of entrepreneur Michal Strnad today raised EUR3.8bn (CZK92.2bn) from the sale of shares on the Amsterdam stock exchange, representing 15.2 percent of its share capital, CSG said in a press release.

The valuation of the group based on the final offer price of the shares reached EUR25bn (CZK607bn), the company said.

The company offered EUR750m (CZK18.2bn) worth of new shares when it went public, EUR2.55bn (CZK61.9bn) worth of existing shares sold by the current shareholder, and an over-allotment option of up to EUR496m (CZK12bn). The company intends to use the net proceeds from the sale of the new shares for its development.

Strnad described CSG's listing as a milestone for the company. "Becoming a publicly listed company demonstrates our commitment to high standards of transparency, disclosure and corporate governance and strengthens our ability to invest in innovation, expand our global reach and deliver on our mission to be a critical long-term supplier of advanced defence and industrial solutions to NATO states and government partners worldwide," he said.

In addition to Amsterdam, CSG shares started trading on the Prague Stock Exchange's (BCPP) unregulated Free Market today. There, they opened at CZK850, more than 40 percent above the benchmark initial public offering (IPO) price, Wood & Company broker Vladimir Vavra told CTK.

Some 12 million CSG shares changed hands on the Amsterdam stock exchange in the first 20 minutes of trading, representing 9 percent of the IPO transaction volume. In Prague, 300,000 shares have already changed hands, Vavra said.

CSG is one of Europe's leading producers of artillery ammunition. It has been expanding in this sector even before Russia's full-scale invasion of Ukraine in 2022. According to the Stockholm International Peace Research Institute (SIPRI), CSG is the fastest growing European company in the global arms market in terms of annual revenue growth.

Market capitalisation of publicly traded Czech companies at around 10:30 today (CZK bn):

CSG	767.17
CEZ	655.81
Komercni banka	232.81
Moneta Money Bank	101.79
Colt	49.61
Philip Morris CR	38.08
Doosan Skoda Power	13.59
Kofola	10.57
Primoco	5.42

Source: XTB

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