Czechoslovak Group Launches €3.8 Billion IPO on Euronext Amsterdam

Czechoslovak Group (CSG), a Prague-based defense and industrial manufacturer, has launched a €3.8 billion initial public offering on Euronext Amsterdam. The listing aims to support growth initiatives, broaden the investor base, and strengthen the company’s financial position amid rising European defense spending. Shares are priced at €25 each, marking one of the largest European defense IPOs in 2026.

IPO Structure and Investor Participation

The offering combines newly issued shares and a partial sale of existing shares held by founder Michal Strnad. Approximately 15% of the company’s total share capital is being made available to institutional investors, resulting in an implied market valuation of around €25 billion.

Proceeds from the new shares are expected to provide CSG with roughly €724 million to fund strategic initiatives, while the sale of existing shares could generate close to €3 billion for Strnad, who will retain controlling interest. According to market observers, this structure balances the liquidity needs of current shareholders with the company’s desire to reinforce its balance sheet.

Institutional interest in the IPO has been strong, with order books reportedly filling quickly. Listing on Euronext Amsterdam, rather than a regional exchange, provides access to a deeper pool of international capital and greater visibility among global investors. The capital raised will be deployed for general corporate purposes, including enhancing financial flexibility, supporting organic growth, and potentially funding future acquisitions.

Strategic Timing and Market Environment

CSG’s decision to go public coincides with sustained increases in defense budgets across Europe and NATO member states. Elevated military spending since 2022 has bolstered demand for armored vehicles, ammunition, and other defense systems, improving revenue visibility for companies in the sector.

Market conditions have been favorable for defense equities, with listed peers reporting strong order backlogs and share performance. CSG management has highlighted these trends as a key reason for the timing of the IPO, suggesting that public markets are currently well positioned to reflect long-term demand for defense products.

The choice of Amsterdam over Prague or other regional exchanges is strategic. Euronext offers higher liquidity, broader analyst coverage, and a larger international investor base, which can help support valuation and long-term engagement with institutional shareholders. Analysts note that the scale of the IPO underscores CSG’s ambitions to establish itself as a leading pan-European defense company.

Growth Trajectory and Global Ambitions

Over the past decade, CSG has expanded from a regional industrial holding into a diversified defense and industrial group. The company manufactures ammunition, armored vehicles, and military systems, serving customers across Europe, North America, and other global markets.

Acquisitions, including the U.S.-based Kinetic Group, have been central to its expansion, strengthening North American operations and diversifying revenue streams. Investments in modernized production facilities and increased capacity have also supported rapid growth, reflected in higher revenues and profitability.

The IPO represents a major transition for the privately held group, introducing public shareholders while maintaining founder control. Management emphasizes continuity in strategy, with the listing viewed as a tool to reinforce CSG’s financial position and enable continued international expansion.

CSG’s €3.8 billion IPO on Euronext Amsterdam is a significant milestone for the company and the European defense industry. By tapping public equity markets, the group aims to enhance its capital structure, support growth initiatives, and expand its global footprint. Strong institutional interest highlights confidence in CSG’s strategy and the broader outlook for defense manufacturing in Europe.