CSG IPO Prices at €25 as Defence Boom Draws Europe Investors

€25 pricing sets a €25bn valuation as CSG enters public markets

Czechoslovak Group, known as CSG, priced its initial public offering at €25 a share as it launched one of Europe’s largest defence listings in years, aiming to raise up to €3.8 billion in Amsterdam. The transaction offers up to 15.2% of the company through a mix of new and existing shares and implies a market capitalisation of about €25 billion, according to the prospectus.

The listing arrives at a moment when the defence boom is reshaping investor appetite across European equities. For markets, the deal is a live test of whether sector momentum can carry a large IPO through pricing, allocation, and early trading, without the volatility that has derailed many high-profile flotations.

New shares fund growth while the owner sells a large block

The offer includes 30 million newly issued shares, giving CSG fresh capital of roughly €750 million before fees at the €25 offer price. The sale also includes up to 122 million existing shares, including an over-allotment, held by Czech billionaire Michal Strnad, who retains control after the transaction.

The split matters for how investors read the book. A sizeable primary raise supports growth plans and balance-sheet flexibility, while a large secondary component increases free-float supply and broadens the shareholder base. Assuming the over-allotment is exercised, the prospectus indicates net proceeds of nearly €3 billion would flow to Strnad, with the company receiving net proceeds of about €724 million from the new share issuance.

Amsterdam trading schedule turns the IPO into a near-term volatility catalyst

The deal timetable is compressed, with trading expected to begin on Friday under the prospectus schedule. That speed can amplify price moves, because short books leave less time for long-only funds to build conviction and can encourage faster positioning by hedge funds seeking early momentum.

The venue choice also matters. The Euronext Amsterdam listing puts the city back on the radar for large European floats, after several quiet years in which many issuers either delayed or chose other venues. If the IPO trades well, it can draw more issuers into the pipeline and support higher equity issuance volumes into the first quarter.

Defence revenues surged in 2025 as Ukraine demand stayed strong

CSG has been one of the fastest-growing defence groups in Europe, benefiting from replenishment orders and higher military spending since 2022. The company reported revenue of about €4.5 billion in the first nine months of 2025, up 82% year on year, reflecting a sharp ramp in munitions and related equipment deliveries.

The business spans artillery and handgun ammunition, armoured vehicles, trucks, and defence electronics. Scale and product breadth matter for valuation because they diversify revenue sources and reduce reliance on a single contract category. CSG has also expanded into the United States, including the $2.2 billion acquisition of Kinetic, adding capacity and a wider customer footprint.

Cornerstone demand anchors the book and signals institutional support

The company entered the offering with cornerstone commitments totalling €900 million, including backing from Artisan Partners, BlackRock-managed funds, and Al-Rayyan Holding, a unit of Qatar Investment Authority. In a choppy issuance market, that anchor capital reduces execution risk and can support tighter pricing dynamics.

For Europe investors, the cornerstone line-up is also a signal that the defence sector’s rerating is not purely retail-driven. Institutional allocations can reduce early-day price swings, but they can also create scarcity if the free float is small relative to demand, increasing the chance of a sharp first-week move.

How the IPO could move defence stocks and valuation comparisons

The listing sets up direct comparisons across European defence names, where valuations have climbed as governments locked in multi-year procurement budgets. Tomáš Vlk, chief analyst at Patria Finance, has previously argued that CSG would rank among Europe’s larger traded defence players once listed, with its size likely exceeding some established peers even if it trades at a discount to the highest-rated names.

That comparison matters for market pricing. A strong debut could pull more capital into the sector, lifting broader defence equities as investors rotate toward companies with visible order books and pricing power. A weak debut would not end the defence boom, but it could pressure multiples and make investors more selective on IPO timing, debt levels, and free cash flow conversion.

Dividend plans and M&A optionality shape the equity story beyond 2026

CSG has highlighted a future dividend framework, targeting a 30%–40% payout from 2027, an approach that can attract longer-duration investors looking for income and stability rather than only growth. The company has also positioned the listing as a step toward using shares more actively in corporate development, including acquisitions and industrial partnerships.

For markets, that creates two separate narratives. One is a growth track tied to rising defence spending and replenishment demand, which supports earnings expansion. The other is an “industrial consolidation” track, where a listed equity currency can speed up deals and strengthen bargaining power with suppliers and customers.

Risk factors investors will price: budgets, geopolitics, and execution

The base case for the stock is continued elevated procurement and steady deliveries, with CSG maintaining production output and translating demand into cash generation. Under that path, the IPO price at €25 could be seen as a reasonable entry point if sector multiples hold and the company sustains growth from a much larger revenue base.

Upside would require a clear catalyst, such as additional long-term contracts, faster integration of U.S. assets, or margin improvement from higher scale and improved purchasing terms. In that scenario, the deal could draw in more international investors and support further rerating across European defence shares.

Downside risk is concentrated in three triggers: a sharp change in political priorities that slows procurement, operational bottlenecks that delay deliveries, or a funding environment that forces higher borrowing costs during expansion. Any of those could increase earnings volatility and pressure the stock if investors decide the defence boom has peaked for near-term growth rates.