Exclusive-Czech defence firm CSG nears IPO decision that would boost M&A war chest

Core Viewpoint - Czechoslovak Group (CSG) is considering an initial public offering (IPO) to float around 15% of its shares, aiming to finance future acquisitions in a rapidly growing defense sector [1][2] Group 1: Company Overview - CSG is recognized as Europe's fastest-growing defense firm, with significant annual revenue growth in a global arms market projected to be worth $2.7 trillion in 2024 [2] - The company is in discussions with banks, including BNP Paribas, Jefferies, JPMorgan, and UniCredit, regarding the potential IPO [3] Group 2: IPO Details - The decision on whether to proceed with the IPO, likely to be held in Amsterdam, is expected to be made in the near future [4] - The proposed IPO size of 15% has not been previously reported, indicating a strategic move to attract investor interest [2][3] Group 3: Valuation Insights - CSG's potential valuation could range between 34 billion and 50 billion euros based on comparisons with German defense giant Rheinmetall, before applying any discounts [5] - If valued close to the sector average, CSG would be worth approximately 22 billion euros [5] - Rheinmetall's enterprise value is significantly higher than the industry median, which may influence CSG's expected valuation [6]