CSG Targets Major IPO to Fuel Global Defense Consolidation

Prague/Amsterdam – Czechoslovak Group (CSG), the defense giant owned by billionaire Michal Strnad, is reportedly in the final stages of deciding on an Initial Public Offering (IPO). The move is designed to create a massive “war chest” for future Mergers and Acquisitions (M&A) as the company seeks to cement its position among Europe’s elite defense contractors.

Thank you for reading this post, don't forget to subscribe!

Strategic IPO Framework

Feature	Details
Primary Listing	Amsterdam (Euronext)
Secondary Listing	Prague Stock Exchange (potential dual-listing)
Estimated Stake	Approximately 15% of equity
Target Valuation	€23B – €30B
Key Underwriters	JPMorgan, Jefferies, BNP Paribas, and UniCredit

Why Now? The “Acquisition Currency” Strategy

The primary driver behind the listing isn’t just cash—it’s leverage. By taking the company public, Strnad intends to use CSG shares as a liquid “acquisition currency.” This allows the group to:

• Fund Mega-Deals: Compete for larger targets in the U.S. and Europe without over-leveraging with debt.
• Consolidate Ammunition Markets: Following the recent $2.2 billion Kinetic Group deal and the ZVI Vsetín buyout, CSG wants to control the entire supply chain from primers to large-caliber shells.
• Capitalize on Re-Armament: With European defense budgets at historic highs, CSG is pivoting from a regional player to a global powerhouse.

Financial Trajectory

The group’s growth has been fueled by a surge in demand for heavy artillery and ammunition. From a pre-2022 EBITDA of roughly €110 million, the firm hit €1.1 billion in 2024. Projections for 2026 suggest even higher margins as long-term contracts with NATO members begin to vest.

Note: A formal announcement regarding the “Go/No-Go” decision is expected by the end of Q1 2026, depending on market volatility and the finalization of the group’s 2025 audited accounts.