Czech weapons manufacturer CSG debuted on the Amsterdam stock market Friday, raising 3.8 billion euros in the world’s biggest initial public offering (IPO) in the defence sector.
The $4.6-billion flotation values the company, a key supplier of ammunition and weapons to NATO countries and Ukraine, at £25 billion, according to a statement from the Amsterdam market.
It was “the world’s largest defence IPO ever recorded, both in terms of amount raised and market capitalisation,” the exchange said.
According to the firm’s prospectus, CSG is the “second largest medium- and large-calibre ammunition producer in Europe and largest small-calibre ammunition producer globally by sales.”
Nearly 70 per cent of its sales come from NATO countries, and it believes it stands to benefit as the alliance ramps up weapons and ammunition production to counter threats from Russia.
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At a summit meeting in The Hague last year, NATO countries committed to boosting spending on defence to five per cent of output by 2035.
The firm said it sells in more than 70 countries worldwide and employs 14,000 staff.
Founded in the Czech Republic, CSG also has factories in India, Italy, Serbia, Slovakia, Spain, the United Kingdom, and the United States.
CSG chairman Michal Strnad hailed what he called a “historic milestone” with the IPO.
“We are proud of the combination of our Czech industrial heritage and our global manufacturing footprint,” added the 33-year-old entrepreneur.
AFP
