CSG shares dip below subscription price for first time

Prague, March 27 (CTK) - Shares of arms manufacturer Czechoslovak Group (CSG) today traded for the first time on the stock exchange in Amsterdam at a price below the subscription price of EUR25 (CZK614) per share, according to stock exchange statistics.

CSG also lost its position as the most valuable domestic exchange-traded company in terms of market capitalisation today, and energy group CEZ regained that position, analysts said. CSG shares have fallen by almost a quarter since trading began two months ago.

"On Tuesday, CSG reported a closing market capitalisation of CZK645bn on the Prague Stock Exchange, where its shares are also traded. Now this capitalisation is CZK615bn. CEZ shares had a closing market capitalisation of about CZK627bn on Thursday, while today it is almost CZK635bn," said Trinity Bank analyst Lukas Kovanda.

CSG overtook CEZ more than two months ago after a successful stock market listing. Since then, however, it has lost about CZK200bn in market value.

CSG shares fell below the subscription price on the Amsterdam stock exchange for the first time after the company posted strong results but perhaps a weaker outlook than investors expected, XTB analyst Tomas Cverna told CTK. Another reason for the stock's earlier declines, he said, is the case surrounding the put option of a significant minority shareholder, the exercise of which will burden the company due to the need for settlement.

CSG majority owner and group chief Michal Strnad has seen his fortune plunge from USD37.7bn as of January 26, 2026, to USD28.9bn as of Thursday due to the decline in the firm's share price, said Kovanda.

Kovanda said CSG's 2025 results were not entirely convincing, especially in small-calibre ammunition. In addition, the outlook for this year remained the same, which investors were also ambivalent about. CSG's shares are understandably not helped by the generally unfavourable sentiment on world stock markets caused by the Middle East conflict. "Energy companies, for example, including CEZ, are more resilient to these adverse developments, with some of them even seeing a sharp rise in their share prices due to the rise in energy commodity prices, led by oil," he said.

CSG raised EUR3.8bn (CZK92.2bn) through the share sale, representing 15.2 percent of its share capital. According to analysts, it was the largest-ever share subscription by an arms firm. The valuation of the group based on the final offer value of the shares reached EUR25bn (CZK607bn). The company intends to use the net proceeds from the sale of the new shares for its development.

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