Prague-based defence firm Czechoslovak Group (CSG) is set to begin trading in Amsterdam on Friday, in a deal that is expected to become the biggest defence IPO on record by funds raised.
The listing values the Czech-owned group at 25 billion euros ($29.30 billion), placing it among Europe’s most significant market debuts in recent years.
The offering, as reported by Reuters, comes as investors continue to back defence companies across the region, fuelled by Russia’s invasion of Ukraine and rising commitments from European governments to increase military spending.
CSG’s IPO also arrives as defence stocks remain sensitive to geopolitical headlines, with the sector touching record highs this year.
Biggest defence IPO by funds raised
CSG’s shares will be priced at 25 euros each, according to a prospectus published earlier this week. The company expects to raise 3.8 billion euros from the offering, and trading is due to begin at 0900 CET on Friday.
15.2% of the stake in the company will be listed on the Amsterdam exchange, the prospectus said.
The structure includes both fresh capital raised for the business and a partial sale by its owner, allowing investors to buy into the company while also generating a sizeable personal return for the founder’s family.
The deal comprises 30 million new shares issued by CSG and up to 122 million existing shares held by Michael Strnad.
Michael Strnad’s stake sale and personal windfall
Strnad, the 33-year-old owner of CSG, is expected to net just under 3 billion euros from the deal, while the remaining proceeds will go to the company, according to the prospectus.
The offering marks a major milestone for the Czech billionaire, whose family’s business roots trace back to post-Cold War defence trading.
Strnad’s father began trading old Soviet-era military equipment in the 1990s, a period when Eastern European military stockpiles were being sold and repurposed.
CSG announced its intention to float last week and opted to proceed with a faster-than-standard process, suggesting confidence that market conditions and investor appetite remain supportive for a defence listing of this scale.
Why Europe’s defence sector is drawing fresh capital
CSG’s listing lands in a market environment where defence companies have seen a surge in both attention and investment.
Russia’s invasion of Ukraine has pushed European governments to revisit long-term spending targets, while investors have positioned for sustained demand across equipment, ammunition, and logistics.
CSG counts Ukraine among its key customers and has been described as one of the world’s fastest-growing defence companies.
Its profile has benefited from the wider re-ordering of procurement priorities across Europe, as the continent shifts from decades of lower defence budgets to a renewed focus on military readiness.
European defence stocks have touched record highs this year.
They were pushed higher again this week by US threats to take control of Greenland, before paring some gains after President Donald Trump ruled out taking the territory by force.
Big demand, big names, and a faster process
Early indications point to strong demand for CSG’s shares. Books on the IPO were quickly covered on Tuesday, an expert, signalling interest that exceeded the deal size.
Cornerstone participation has also helped underpin the offering.
Funds managed by Artisan Partners, BlackRock, and Al-Rayyan Holdings, a subsidiary of the Qatar Investment Authority, each committed 300 million euros, according to the prospectus.
CSG said the IPO would help raise its profile with international investors, while boosting brand recognition and credibility.
It also said a listing would give it greater financial flexibility through wider access to capital.
The company’s debut also comes as other European defence groups consider listings.
Franco-German tankmaker KNDS is among the large firms expected to go public this year, adding to a busy pipeline across the sector.
With a 25 billion euro valuation and a multi-billion euro fundraising plan, CSG’s Amsterdam listing is expected to serve as a key gauge for how much demand investors have for European defence growth stories in public markets.
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