LONDON/ Jan 23 – Prague-based Czechoslovak Group CSG is set to begin trading at a valuation of 25 billion euros ($29.30 billion) in Amsterdam on Friday in what is set to be the largest initial public offering by funds raised of a defence company on record.
The offer will price CSG’s shares at 25 euros each and raise 3.8 billion euros, according to a prospectus published earlier this week. A stake of up to 15.2% will be listed on the exchange, the prospectus said. CSG is due to begin trading at 0900 CET on Friday.
Michael Strnad, the 33-year-old owner of the company is on course to net just under 3 billion euros in the deal, while the rest of the proceeds will go to the company, according to the prospectus.
The listing of CSG, whose key customers include Ukraine and is one of the world’s fastest‑growing defence companies, comes as investors plough money into the sector following Russia’s invasion of Ukraine and commitments from European governments to ramp up defence spending.
European defence stocks have touched record highs this year and were pushed higher this week by U.S. threats to take control of Greenland. They pared some of those gains after President Donald Trump ruled out taking the territory by force.
Other large European defence firms, such as Franco-German tankmaker KNDS, are also set to list this year.
Books on the CSG offering were quickly covered on Tuesday, indicating demand exceeding the deal size, a bookrunner said. Funds managed by Artisan Partners, BlackRock and Al-Rayyan Holdings, a subsidiary of the Qatar Investment Authority, have committed to cornerstone the deal with 300 million euros each.
The offering comprises 30 million new shares and up to 122 million existing shares held by Strnad.
Led by Strnad, whose father began trading old Soviet-era military equipment in the 1990s, CSG announced its intention to float last week and has opted to press ahead with a faster-than-standard process.
In its prospectus earlier this week, CSG said the IPO would raise its profile with international investors, boost brand recognition and credibility, and give it greater financial flexibility through wider access to capital.
($1 = 0.8532 euros)
(Reporting by Charlie Conchie in London. Editing by Anousha Sakoui and Louise Heavens)