Czech Defense Giant CSG Surges In Record IPO Debut

Shares of the Czech defense powerhouse Czechoslovak Group (CSG) soared on their first day of trading in Amsterdam, marking a historic moment for both the company and Europe’s defense sector. On January 23, 2026, CSG’s stock surged as much as 32% above its initial offer price, reflecting a wave of investor enthusiasm and underscoring the growing appetite for defense stocks amid heightened geopolitical tensions and increased European military spending.

According to Reuters and Global Banking and Finance Review, CSG’s debut on Euronext Amsterdam was nothing short of spectacular. The shares, priced at €25 each for the initial public offering (IPO), climbed as high as €33 ($38.72) in early trading. By 09:43 GMT, the stock was trading at €31.60, up 26.4% from the offer price. This robust performance propelled the company’s market capitalization to over €30 billion ($35.22 billion), with the IPO offering up to 15.2% of the company and initially valuing CSG at €25 billion ($29.3 billion).

The IPO itself was a record-breaker: CSG raised up to €3.8 billion by selling 30 million new shares and up to 122 million existing shares, including an over-allotment option. This makes it the largest-ever initial public offering for a pure-play defense firm, surpassing any previous listings in the sector. As Dealogic notes, if the full offering is exercised, it would be the biggest listing in Amsterdam since KKR Private Equity Investors raised $5 billion back in 2006.

Michael Strnad, the 33-year-old owner and driving force behind CSG, will personally net just under €3 billion from the deal, including the over-allotment. The remaining proceeds will go directly to the company, fueling further expansion and innovation. Strnad’s story is itself a testament to the company’s rapid ascent: his father began trading Soviet-era military equipment in the 1990s, and under Michael’s leadership, CSG has grown into one of the world’s fastest-growing defense companies.

“One of the reasons for the listing was to use stock as potential acquisition currency,” Strnad told Reuters earlier this month. This strategy is already bearing fruit. In 2024, CSG acquired the leading U.S. small ammunition maker Kinetic for $2.2 billion, adding prestigious brands such as Remington to its portfolio. Such acquisitions have helped CSG build a formidable order pipeline and position itself as a major player on the global stage.

CSG’s product range is broad and formidable, spanning large- and small-caliber ammunition, heavy ground equipment, and radar systems. Its key customers include Ukraine—a relationship that has become even more significant as European governments ramp up defense spending in response to Russia’s invasion of Ukraine. In fact, the surge in military budgets across Europe has sent defense stocks to record highs this year, as investors seek to capitalize on what many see as a long-term shift in government priorities.

The company’s financial outlook is equally impressive. CSG announced in November that it expects revenue to rise to between €7.4 billion and €7.6 billion in 2026, up from more than €6.4 billion projected for 2025. In a further nod to investor confidence, CSG is targeting a dividend payout of 30% to 40% of net profit, payable from 2027 onwards.

Investor demand for the IPO was intense and immediate. According to a bookrunner cited by Reuters, order books for the offering were swiftly covered on Tuesday, ahead of the Friday debut. Major institutional investors lined up to become cornerstone backers: Artisan Partners, BlackRock, and Al-Rayyan Holdings (a subsidiary of the Qatar Investment Authority) each committed €300 million to the deal. This rapid uptake underscores the sector’s allure and the market’s faith in CSG’s future prospects.

The timing of CSG’s IPO could hardly have been better. With European defense budgets on the rise, the sector has become a magnet for capital. Other large European defense groups, such as Franco-German tankmaker KNDS, are reportedly preparing their own listings this year. Yet CSG’s debut sets a formidable benchmark, both in terms of scale and investor enthusiasm.

At current prices, CSG boasts a larger market capitalization than CEZ, the Czech Republic’s biggest listed company. That’s quite a leap for a firm whose roots trace back just a few decades to the post-Soviet era. The company’s meteoric rise is a reflection not only of its strategic acquisitions and robust product offerings but also of the broader geopolitical environment that has brought defense spending—and defense stocks—into sharp focus.

For many investors, CSG represents a unique opportunity to gain exposure to a sector that is both essential and, increasingly, in demand. The company’s commitment to returning value to shareholders through dividends, coupled with its aggressive growth strategy, makes it an attractive proposition in an uncertain world.

“CSG has built up its order pipeline and said in November that revenue would rise to 7.4–7.6 billion euros this year, from the more than 6.4 billion expected for 2025,” reported Reuters. With such growth on the horizon, and with cornerstone investors already on board, the company appears well-positioned to capitalize on the defense sector boom.

It’s not just about numbers and acquisitions, though. The symbolism of CSG’s debut on Euronext Amsterdam—complete with the iconic Charging Bull sculpture at the stock exchange—serves as a reminder of the shifting tides in European industry and security. As the continent faces new challenges, companies like CSG are stepping into the spotlight, offering both solutions and opportunities for those willing to invest.

Looking ahead, the company’s strategy of leveraging its stock for further acquisitions could see it expand even further, both in Europe and beyond. With a strong order book, a growing list of global customers, and a commitment to shareholder returns, CSG’s future looks as robust as its armored vehicles.

CSG’s record-breaking IPO not only signals a new era for the company but also reflects the broader transformation underway in the European defense sector. As governments spend more on security and investors seek stability in uncertain times, CSG’s Amsterdam debut may well be remembered as a defining moment for the industry.