Michal Strnad makes no secret of it: a listing would provide a major lever to take part in the sector's consolidation. "I want to have the option to potentially use shares as a currency," the 33-year-old executive said from Prague in an interview with Reuters. To orchestrate the move, with Amsterdam the forerunner as the venue, the group has mandated a top-tier banking syndicate including BNP Paribas, Jefferies, JPMorgan and UniCredit. While no final decision has yet been made, advisers recommend 15% free float, likely combining a share sale with a capital increase. That step would cap the group's global expansion, already marked by its 2024 purchase of US ammunition maker Kinetic for $2.2bn.
A $2.7 trillion market
The timing appears ideal. Driven by higher NATO spending and the war in Ukraine, CSG has emerged as Europe's fastest-growing player, according to SIPRI. The momentum is drawing investors to a global market worth $2.7 trillion in 2024, prompting other manufacturers such as KNDS to consider the stockmarket route. For CSG, a major producer of artillery ammunition, an IPO would also aim to reassure institutional customers. "It depends on many factors, but I listen to them carefully and form my own opinion," Strnad said of his bankers' recommendations.
A market cap of 20 to 30 billion euros?
On valuation, the chairman is urging markets to look to Germany. "Look at our results, compare them with our natural European peer," he said, referring to Rheinmetall, while acknowledging that a discount would apply because CSG does not count the German army among its customers. If Rheinmetall's multiples are applied (21x expected EBITDA), CSG's theoretical valuation could reach €50bn. A more conservative approach, in line with the sector median (13.7x), would put it closer to €22bn, meanwhile, Bloomberg recently cited a target of €30bn. In comparison, Rheinmetall is worth €80bn, Thales €51bn and Dassault Aviation €22.8bn.
