Czech defence tech CSG considers IPO as European governments arm up

Czechoslovak Group AS (CSG), the Czech-based arms manufacturer that has grown into one of Europe’s most prominent private defense companies, is considering an initial public offering (IPO) that could value the firm at over €30 billion.

The Prague-headquartered group, best known for its heavy ammunition production and armored vehicles such as the Pandur 8x8 EVO, is reportedly in the early stages of appointing banks for the potential listing. A spokesperson for CSG declined to comment on the plans.

Founded in 1995 CSG has seen its business surge in recent years, largely driven by Europe’s shifting defense priorities following Russia’s full-scale invasion of Ukraine in 2022. According to its 2024 annual report, CSG generated 42.8 percent of its revenue from Ukraine last year, supplying over one million units of artillery ammunition, much of it under a Czech government initiative.

Annual revenues reached €4 billion last year.

With European governments now pledging to increase long-term defense spending, investor interest in the defense sector is rising accordingly. A successful IPO could position CSG as a key publicly traded player.

CSG is not alone in seeking to capitalise on this momentum. KNDS NV, the Franco-German joint venture behind the Leopard tank and other military vehicles, is also reported to be considering a public listing. Defense firms have generally outperformed European equities since 2022, buoyed by both geopolitical tailwinds and increasing public sector procurement.

The potential listing would mark a rare high-profile IPO for Europe’s capital markets, which have struggled with low issuance volumes in recent years amid economic uncertainty and shifting interest rate regimes.

CSG has also been expanding through acquisitions. Last year, it agreed to buy U.S. ammunition producer Kinetic Group for over $2 billion and recently explored the acquisition of the defense unit of Italy’s Iveco Group NV.