Czechoslovak Group (CSG), a leading Czech defence and ammunition manufacturer, announced plans to float both new and existing shares on Euronext Amsterdam, in what could be one of Europe’s largest initial public offerings (IPOs) of the year. The IPO aims to tap into the record growth in global defence spending and elevate CSG’s profile among international investors.

The offering is expected to include new shares worth €750 million ($873.6 million), with the amount of existing shares to be determined at a later stage. Cornerstone commitments totaling €900 million have already been secured from Artisan Partners Limited Partnership, BlackRock, and Al-Rayyan, a subsidiary of Qatar Investment Authority.

IPO to Fund Growth and Raise Global Profile

CSG, which supplies ammunition and defence equipment to NATO countries and the Ukrainian military, said the proceeds from the IPO would be used for general corporate purposes, including continued expansion and acquisitions.

Chairman and sole owner Michal Strnad said:

“We believe an IPO of CSG would elevate the profile of the group within the international investment community, providing additional financial flexibility and diverse funding sources to support further growth.”

The IPO could raise over €3 billion, potentially making it the largest Amsterdam listing since InPost in 2021, which raised $3.9 billion according to Dealogic data. Strnad indicated that the company is considering listing around 15% of its shares, though no final decision has been made.

Rapid Growth in Global Defence Sector

Europe’s defence stocks have surged in recent years as governments increase military spending in response to geopolitical instability, including the 2022 invasion of Ukraine and tensions in regions such as Venezuela and Iran.

CSG has been a standout in the sector, reporting revenues of €4.5 billion in the first nine months of 2025, up 82% year-on-year on a pro-forma basis. Operating earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 79% to €1.2 billion.

The company has expanded organically and through acquisitions, including the $2.2 billion purchase of U.S. ammunition maker Kinetic, giving CSG a significant global footprint. Strnad, 33, has rapidly scaled the family-run business into one of the fastest-growing defence firms worldwide.

Defence Market Context

Investor appetite for European defence companies remains high. Other firms, such as Franco-German tank maker KNDS, are also exploring IPOs in 2026, while stock prices for defence companies have hit record highs, boosted by calls for higher military spending from policymakers, including U.S. President Donald Trump.

CSG cited Rheinmetall (RHMG.DE) as a valuation benchmark, though Strnad expects some discount relative to the German peer. The IPO is also expected to establish a dividend policy of 30-40% of net profit, with payouts commencing in 2027.

Strategic Outlook

CSG’s IPO represents a strategic move to diversify funding sources, expand internationally, and strengthen its position in the global defence market. With cornerstone investors already on board, the company aims to leverage rising NATO defence budgets, international contracts, and market momentum to continue its rapid growth trajectory.

As Europe and other regions ramp up defence expenditure, the CSG IPO is poised to attract institutional and retail investors seeking exposure to the booming defence sector, cementing the company’s status as a key player in global military supply chains.