CZ Going Public? Prague Stock Exchange to List Company's Shares

Will P
by Will P
CZ prepares to go public by listing its shares on the Prague Stock Exchange.

In a press release dated May 31st, 2020, Czechoslovakian firearms manufacturer Česká zbrojovka Group SE (CZG for short, more commonly known as CZ) announced shares of their company will be listed on the Prague Stock Exchange as of June 1st. This is not yet an IPO, or Initial Public Offering, by which shares of ownership in CZ can be bought and sold. Rather, this is a technical listing in preparation for CZ to go public sometime between the third quarter of 2020 and the 1st quarter of 2021, dependent on a number of variables including market conditions.

CZ’s press release reads as follows:

Praha (31 May 2020) ― The shares of CZG – Česká zbrojovka Group SE (“CZG” or the “Company”), one of the leading European manufacturers of firearms, have been admitted to trading on the Prime Market of the Prague Stock Exchange (“Prime Market”) with effect from 1 June 2020 in the form of a so-called technical listing without a prior public offering of the shares. In connection with the listing, the Company prepared a prospectus, which was published on the Company’s website today.

“The decision to list shares on a regulated stock market is an expression of our determination to operate as transparently and openly as possible. We believe that we will further strengthen our credibility for partners, especially in international markets,” says Lubomír Kovařík, president of CZG. “It is also a first step towards our long-term goal to become a standard traded company that can enter the capital market at the right time to obtain financing for its development plans,” adds Mr. Kovařík.

The shares reference price was set based on a valuation prepared by the Company. CZG will be subject to all reporting and other obligations associated with the listing of shares on the Prime Market.

CZG expects that, depending on the development of market conditions, it could proceed with a public offering of its shares in the future. However, no final decision has been made on the form or timing of such a possible offer.

“Česká zbrojovka brand represents the field of precision engineering, in which we have always belonged to the absolute top leaders. I am extremely glad that the name of such an important and world-famous company is associated with the name of the Prague Stock Exchange. I strongly believe that thanks to the technical listing, the issuer will build the same excellent reputation on the capital market as it has in its field, and that it will soon access the capital market for issuing its shares, which will be offered to a wide range of investors,” says Petr Koblic, CEO of the Prague Stock Exchange.

About CZG

CZG – Česká zbrojovka Group is one of the leading European producers of firearms for military and law enforcement, personal defense, hunting, sport shooting and other civilian use. Its companies include Česká zbrojovka, CZ-USA, Brno Rifles, 4M Systems and CZ Export. The CZ (Česká zbrojovka) brand has over 80 years of history. CZG has production facilities in the Czech Republic and the United States, in which it employs approximately 1,650 people. Last year, CZG announced plans to build a new manufacturing and distribution facility in Little Rock, Arkansas.

CZ's popular offerings include the Scorpion, shown here in the EVO 3 S2 Pistol Micro variant equipped with a folding brace.

According to Reuters, CZ’s 2019 earnings before interest, tax, depreciation, and amortization came to 1.341 billion Crowns. With one US Dollar equalling 24.23 Crowns at the time of this writing, that’s approximately $55.35 million USD. At this time, CZ is 90% owned by majority shareholder Rene Olecek with the remaining 10% owned by CZ’s management. This news shortly follows another financial move by the company, as TFB recently reported CZ’s acquisition of a stake in Spuhr.

Photos courtesy of CZ.
Will P
Will P

Lifelong hobby/sport shooter and hunter, former US Army infantryman, perpetual firearms student. Always seeking to become better and learn more. Interested in a wide variety of shooting disciplines, and passionate about all kinds of guns. Contact on Instagram: @WillTFB

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4 of 10 comments
  • Social_Artifice Social_Artifice on Jun 04, 2020

    Well I'll invest in them. They have a broad and solid offering for commercial customers and a good amount of military contracts. Great investment opportunity if they come stateside.

  • Joe tusgadaro Joe tusgadaro on Jun 04, 2020

    Tangentially connected but Sig Sauer in Germany has just declared bankrupty and is closing their HQ.

    • See 1 previous
    • Jason Culligan Jason Culligan on Jun 05, 2020

      @john huscio Yep, although SIG in Europe did continue to make firearms much of that was centred around the SIG 550.

      A pretty bad business move seeing as the 550 had a reputation for accuracy among shooters from the 90's. Today, most people recognise that the AR is inherently more accurate and cheaper to buy. Its actually cheaper for me to import a SIG MCX from the US than it would have been to buy a new production SIG 550.