The arms manufacturer has held talks with banks about placing around 15 percent of its shares, owner and chairman Michal Strnad told Reuters news agency. As a publicly listed company, CSG would find it easier to pursue acquisitions. Strnad named BNP Paribas, Jefferies, JPMorgan, and UniCredit as global coordinators for a potential IPO. A decision on the listing, which could take place in Amsterdam, could be made in the near future.
The defense sector is experiencing a boom due to Russia's attack on Ukraine and the resulting increase in defense spending by many NATO countries. Numerous companies in the industry are pursuing growth, and investors are snapping up shares. German-French defense group KNDS, for example, is targeting a stock market debut around 2026. "The time is right and the company is ready," emphasized supervisory board chairman Thomas Enders recently. "In the defense sector, everyone will accelerate their IPO plans," an investment banker told Reuters.
Strnad declined to comment on a possible valuation for CSG, but pointed to Rheinmetall as a rough benchmark. "Look at our results, compare them with our natural European competitor — you know who that is — and apply a discount because it is an IPO and we do not have the Bundeswehr as a customer," Strnad said. "That shows the direction." However, CSG is unlikely to reach Rheinmetall's valuation. News agency Bloomberg previously reported, citing insiders, that a valuation of 30 billion euros was being targeted.
CSG is considered a rapidly growing defense company. The 33-year-old Strnad has quickly expanded the firm founded by his father and given it a global presence. This included the $2.2 billion acquisition of US ammunition manufacturer Kinetic. CSG is one of Europe's leading producers of artillery ammunition, with Rheinmetall the dominant player in the field.
(Reporting by Jan Lopatka and Michael Kahn, editing by Matthias Inverardi, edited by Philipp Krach. For inquiries, please contact our editorial offices at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)
