CSG (Czechoslovak Group) Amsterdam IPO Analysis: Largest Defense Sector Listing with 27% Share Surge

Czechoslovak Group (CSG) achieved a landmark debut on Euronext Amsterdam on January 23, 2026, concluding a transformative week for the European defense sector. The company’s shares opened 27% above the initial asking price of €25 per share, implying a market capitalization exceeding $37 billion [1]. This listing represents the largest pure-play defense company IPO in history, validating investor confidence in the sector’s growth trajectory amid ongoing geopolitical instability across Europe.

The offering raised approximately €3.8 billion (roughly $4.6 billion) through the sale of 30 million new shares plus existing shares including an over-allotment option. Cornerstone investors including Artisan Partners, BlackRock, and Al-Rayayyan Holdings committed €300 million each, demonstrating institutional demand for defense sector exposure [1][2]. The strong trading debut follows a year of remarkable performance for European defense stocks, with the Stoxx Europe Aerospace & Defense Index advancing approximately 57% in 2025 and adding another 14.5% year-to-date in early 2026 [4].

Headquartered in Prague, Czech Republic, CSG operates as a vertically integrated defense manufacturer with production facilities across seven countries including India, Italy, Serbia, Slovakia, Spain, the United Kingdom, and the United States. The company employs approximately 14,000 workers globally and serves customers in more than 70 countries, with roughly 70% of sales directed toward NATO member states [1][2][3].

CSG’s product portfolio spans multiple defense categories, positioning the company as the second-largest medium- and large-calibre ammunition producer in Europe while claiming the distinction of being the largest global producer of small-calibre ammunition by sales volume. The company also manufactures heavy ground equipment and advanced radar systems, providing a diversified revenue base that reduces dependence on any single product line [1][2].

Chairman Michal Strnad, who at 33 years old represents a new generation of European defense entrepreneurs, stands to net approximately €3 billion from the transaction through the exercise of the over-allotment option. His father established the family enterprise in the 1990s by trading Soviet-era military equipment following the collapse of the Eastern Bloc, and the company has since evolved into a modern defense conglomerate with significant international operations [1].

The IPO arrives at a moment of exceptional growth for CSG, with the company projecting 2025 revenues exceeding €6.4 billion and 2026 guidance of €7.4-7.6 billion, representing year-over-year growth exceeding 15% [1]. This expansion reflects both organic demand growth and the company’s strategic acquisition of the Kinetic ammunition company in 2024, which expanded its presence in the American defense market.

The company’s strong order backlog provides revenue visibility through the medium term, while structural demand drivers suggest sustained growth beyond current projections. European NATO defense spending is projected to increase from 2.3% of GDP in 2025 to 2.8% by 2030, with some analysts projecting core defense and security spending could reach 5% of GDP by 2035 for certain member states [4][5]. European military spending reached €343 billion in 2024 and is projected to grow to approximately €381 billion in 2025, creating substantial procurement opportunities for established defense manufacturers.

The CSG listing occurs against a backdrop of heightened security concerns across Europe, driven primarily by Russia’s ongoing invasion of Ukraine and evolving uncertainty regarding United States security commitments. The Trump administration’s statements regarding Greenland and suggestions of reduced American involvement in European defense have accelerated European initiatives toward what analysts describe as “sovereign defense” capabilities, reducing dependence on U.S. suppliers [4][5].

This strategic recalibration has benefited European defense manufacturers broadly, with shares of Rheinmetall advancing 23.7% year-to-date, BAE Systems rising 21.0%, Dassault Aviation gaining 14.8%, and Thales adding 13.8% [4]. CSG’s positioning as a major ammunition supplier to Ukraine provides additional revenue visibility while demonstrating the company’s operational capability to scale production rapidly in response to conflict-related demand.

The company’s geographic diversification across multiple production jurisdictions provides operational resilience against potential regulatory disruptions, while its customer base spanning more than 70 countries reduces concentration risk associated with any single regional market.

The Amsterdam listing establishes CSG as the largest listed company in the Czech Republic by market capitalization, surpassing the valuation of Czech utility CEZ. At approximately €30 billion post-debut valuation, CSG compares favorably with established European defense conglomerates including Rheinmetall (approximately €25 billion market cap), Leonardo (approximately €15 billion), while approaching the scale of Thales (approximately €30 billion) [1].

The IPO proceeds will likely support continued capacity expansion and potential further acquisitions in the defense sector. The company’s strategic location within the NATO supply chain, combined with its position as a key supplier to Ukraine, creates a differentiated profile relative to purely domestic defense contractors. The listing on Euronext Amsterdam provides access to deep European capital markets while maintaining the governance standards required of publicly traded defense contractors.

Despite the favorable market reception, several risk factors warrant attention. Defense companies face inherent geopolitical and policy risks, as government defense budgets remain subject to political decision-making and shifts in strategic priorities could impact order pipelines [1]. Export controls and international sanctions regimes create regulatory complexity for companies operating in the defense sector, and changes to these frameworks could affect CSG’s ability to serve certain customers.

The company’s heavy reliance on NATO customers (approximately 70% of sales) creates exposure to alliance budget decisions and procurement priorities. Execution risks accompany rapid capacity expansion efforts to meet elevated demand, and operational strain could affect profitability if production scaling proves challenging. At approximately 4x revenue based on 2025 figures, the valuation leaves limited upside if growth disappoints current expectations.

Additional information gaps exist regarding specific order backlog size, detailed geographic revenue breakdown, profitability metrics including margins and net income figures, long-term debt structure post-IPO, and the company’s strategy for expanding American defense contract competition following the 2024 Kinetic acquisition [1].

The CSG IPO represents a watershed moment for the European defense sector, demonstrating investor appetite for defense exposure at valuations previously reserved for technology and consumer discretionary sectors. The 27% share price surge on debut reflects both the company’s strong operational position and the broader market enthusiasm for defense manufacturers benefiting from increased European security spending commitments. With substantial order backlogs, geographic diversification across production facilities and customer markets, and structural demand growth from NATO’s expansion, CSG appears positioned to capture significant market share in the evolving European defense landscape. The listing provides capital for continued growth while establishing a public market valuation that could facilitate future strategic transactions within the consolidating defense industry.