Zbrojovky on Euronext Amsterdam

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Zbrojovka (pronounced [ˈzbrojofka]) means an arsenal or arms factory in Czech: from the verb zbrojit, meaning to arm, and suffix -ovka, which indicates a noun and/or a place. The land that is now the Czech Republic has been known for arms production since before World War I. Yet, the industrial base struggled to adapt to the geopolitical shifts of the late 20th century. Recently, however, the Czech defence industry has returned to the global stage. This was highlighted by the Czechoslovak Group (CSG), whose listing on Euronext Amsterdam became the largest defence IPO ever recorded.

Between both World Wars and throughout the Cold War, Czechoslovakia was a significant producer and exporter of small arms and ammunition, with production concentrated in the Czech regions. These difficulties were compounded by the dissolution of Czechoslovakia in 1993, known as the Velvet Divorce, which fragmented the country’s defence industry. Additionally, the Warsaw Pact's dissolution and entry into global markets made it hard for most producers to compete and maintain production. 

Now, almost three decades later, the new generation of Czech defence firms has created the revival of this industry. They have done this by consolidating their operations in the Czech Republic and expanding abroad. The two main examples are Colt CZ Group and Czechoslovak Group (CSG). Both companies' strategies shifted from domestically oriented production to a vertically integrated export business. 

Colt CZ's acquisition of Colt's Manufacturing Company in the US led to a big transformation in the company. This enabled the company to access global markets and strengthen its position within NATO supply chains. Meanwhile, CSG has built a strong foundation, becoming a key European supplier in the ammunition market during a period of rising demand.

As these firms expand, their capital requirements grow accordingly. Accessing deeper, more liquid capital markets with broader international visibility has therefore become a strategic priority, highlighting the role of Euronext Amsterdam. CSG’s IPO on the Euronext at the beginning of 2026 raised EUR 3.8 billion with a valuation of EUR 25 billion. This makes it the largest-ever IPO for a pure-play defence firm. Following this success, Colt CZ Group completed its dual listing on the Euronext in April 2026 alongside its existing listing in Prague. The reason for this dual listing was to allow Colt to trade on a more liquid market and gain visibility to a broader investor base, which Euronext provides. Colt’s shares were set at EUR 41.3 with a market capitalisation of EUR 2.6 billion on the day of listing. While these numbers aren’t as groundbreaking as the ones of CSG, they still suggest confidence in Colt’s future in the defence sector. Moreover, both Colt and CSG are now listed on the Amsterdam stock exchange, but why Amsterdam? One reason is that Euronext has a reputation for relatively efficient listing procedures. Listing in Amsterdam shows the ambition to position Czech defence firms not as regional players, but as participants in global capital markets. 

These firms are riding along the wave of macroeconomic and geopolitical trends. Namely, the European rearmament. Since 2022, NATO commitments have been renewed. This increased defence spending is driven by security concerns due to Russia’s invasion of Ukraine. In particular, ammunition production was identified as a bottleneck across all scenarios. Czech companies benefited significantly from this through their positioning and government initiatives. The Czech-led ammunition procurement programme for Ukraine ensured a steady state-backed demand for ammunition, which directly benefits CSG and indirectly Colt CZ. Here, public listings serve a clear function: enabling firms to scale production quickly by meeting their capital needs.

Simultaneously, investors' attitudes towards defence have started to change. What was once viewed with considerable caution for investment is now becoming a necessary component of European economic security. This reassessment has opened the door for many firms seeking to attract capital and combine it with growth potential linked to strategic relevance. Czech companies have the agility and specialisation that are advantageous in a fast-paced environment, such as the arms and ammunition sector, where demand is instant and scalable. 

As Europe continues to rearm, the trajectory of Czech defence firms won't be determined solely by their industrial capabilities but also by their financial needs. By their presence on the Euronext Amsterdam, you can tell that they are willing to do both.

Thank you, Marko, for laying the foundation for this article.