Defense orders before IPO? Slovakia under pressure

An investigation by Slovakian investigative journalists accuses the government of favoring the arms manufacturer Czechoslovak Group (CSG) with contracts worth billions shortly before its IPO. The aim may have been to send a positive signal to investors and support the share price.

The Bratislava-based Ján Kuciak Investigative Journalism Center (ICJK) published its findings on February 19. According to the report, the unusually high volume of contracts between the Ministry of Defense and CSG may have influenced the company's stock market value. According to Bloomberg, CSG owner Michal Strnad became the third richest man in the world under the age of 40 as a result of the IPO. Both CSG and the Ministry of Defense reject the allegations.

60 billion euros in contracts

Since the return of Prime Minister Robert Fico and his Smer party in 2023, the Ministry of Defense has signed contracts with CSG worth a total of €60.36 billion, according to ICJK. That is around €60 billion more than the contract volume of the four previous governments between 2016 and 2023.

The largest share of this is a seven-year framework agreement worth €58 billion for the supply of large-caliber artillery ammunition. The contract was signed in December 2025 with ZVS Holding, a joint venture between the Slovak state and CSG.

According to ICJK, the majority of this sum consists of framework agreements that do not necessarily have to be fully utilized. Critics also doubt that production capacities are sufficient.

Doubts about production capacity

According to the research center, the production capacity of the ZVS plant in Dubnica nad Váhom was around 100,000 units of 155 mm ammunition per year in 2025. A new €100 million filling plant is expected to increase this to a maximum of 280,000 units. ICJK expresses doubts as to whether even this capacity will be sufficient to realistically meet the contractually agreed quantities, especially if other customers are being supplied at the same time.

A spokesperson for CSG explained that the IPO is a strictly regulated process. The intention to go public was officially announced on January 14, 2026, and trading on Euronext Amsterdam began on January 23.

The company emphasizes that the framework agreement is in line with current and planned production capacities. In addition, the defense industry is playing a growing role in the Slovak economy. The number of employees at ZVS Holding has risen significantly since 2021. Defense Minister Robert Kaliňák also denies having been informed about the IPO in advance.

Largest defense IPO worldwide

Euronext described CSG's IPO as the world's largest IPO of a defense company in terms of issue volume and market capitalization. With a market value of around €32 billion, CSG is now the most valuable Czech company.

International banks such as JPMorgan, BNP Paribas, Jefferies, and UniCredit accompanied the transaction.

In addition, CSG faces new allegations in connection with Tatra vehicle deliveries to the Czech and Slovak armies. An opposition politician claims that vehicles were resold at inflated prices through intermediary companies. CSG also rejects these allegations.

This article was produced in cooperation with our partner bne intelliNews.