The Initial Public Offering (IPO) saw the company reach a market capitalization of approximately €35 billion ($35.22 billion) following a surge in share price during its trading debut. This valuation positions CSG as a leading global defense player, surpassing established national entities like the Czech utility CEZ.

The primary objectives of the listing are to capitalize on the global surge in military spending and to establish a liquid equity "currency" for future acquisitions. Driven by its role as a key supplier to Ukraine and its recent $2.2 billion acquisition of U.S.-based Kinetic, CSG is positioned as one of the world's fastest-growing defense companies. With strong cornerstone investment from global financial institutions and a robust revenue pipeline, the group is transitioning from a family-run enterprise into a dominant sovereign defense power.

IPO Performance and Valuation

CSG’s debut in Amsterdam represents one of the most significant defense sector listings in recent history, characterized by rapid demand and substantial valuation growth.

Market Capitalization and Share Movement

• Initial Pricing: The IPO was priced at €25 per share, aiming to raise up to €3.8 billion.
• Trading Debut: Shares rose as much as 32% on the first day of trading. By midday, the market value reached €31.6 billion with shares trading at €31.60 (a 26.4% increase).
• Peak Valuation: The company’s market capitalization climbed to more than €30 billion, eventually hitting a valuation of $35.22 billion (€35 billion).
• Comparative Standing: At these prices, CSG has surpassed the market capitalization of CEZ, previously the largest listed company in the Czech Republic.

Offering Structure

The offering consisted of up to 15.2% of the company, involving:

• 30 million new shares.
• Up to 122 million existing shares (including over-allotment options).
• The deal represents the largest Amsterdam listing since 2006.

Strategic Growth and Market Positioning

CSG's rise is fueled by a combination of aggressive acquisition strategies and a focus on high-demand military hardware.

Acquisition Strategy

Owner Michael Strnad has explicitly stated that a primary driver for the public listing is the ability to use company stock as "acquisition currency." CSG has already demonstrated its appetite for international expansion through:

• Kinetic Acquisition (2024): A $2.2 billion purchase of the leading U.S. small ammunition maker, which includes prominent brands such as Remington.

Core Product Portfolio and Clients

The group has established itself as a critical supplier in the modern geopolitical climate, specializing in:

• Large- and small-caliber ammunition.
• Heavy ground equipment.
• Radar systems.
• Key Clientele: Ukraine is identified as a primary customer, contributing to CSG’s status as a top-tier growth entity in the defense sector.

Financial Outlook and Corporate Governance

CSG’s transition to a public entity is backed by strong financial projections and a history of private growth under the Strnad family.

Revenue and Dividend Targets

The company has provided clear guidance for its financial trajectory:

• Revenue Growth: Revenue is projected to rise to between €7.4 billion and €7.6 billion in 2026, up from an expected €6.4 billion in 2025.
• Dividend Policy: CSG targets a dividend payout of 30%–40% of net profit, scheduled to begin in 2027.

Leadership

The company is led by 33-year-old Michael Strnad, who took over the business founded by his father. The elder Strnad began the enterprise in the 1990s by trading Soviet-era military equipment. Following the IPO and over-allotment, Michael Strnad is expected to net just under €3 billion from the deal.

Investment Climate and Market Context

The success of the CSG IPO reflects a broader institutional interest in the defense industry, spurred by increased global military expenditures.

Institutional Support

The offering attracted swift demand, with order books covered shortly after opening. Notable cornerstone investors committed €300 million each, including:

• Artisan Partners
• BlackRock
• Al-Rayyan Holdings (a subsidiary of the Qatar Investment Authority)

Industry Trends

CSG is part of a broader trend of European defense firms seeking public capital. Other major entities, such as the Franco-German tankmaker KNDS, are also expected to pursue listings this year, indicating a robust appetite for defense-related equities in the current market.

IPO Summary Data Table