Defense Contracts Before the IPO? Slovakia Under Pressure
An investigation by Slovak investigative journalists accuses the government of favoring the defense contractor Czechoslovak Group (CSG) with contracts worth billions shortly before its initial public offering. The aim may have been to send a positive signal to investors and prop up the stock 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 market value. According to Bloomberg, CSG owner Michal Strnad rose to become the third-richest man in the world under 40 as a result of the IPO. Both CSG and the Ministry of Defense deny the allegations.
60 billion euros in contracts
Since the return of Prime Minister Robert Fico and his party, Smer, in 2023, the Ministry of Defense has signed contracts with CSG totaling 60.36 billion euros, according to the ICJK. That is approximately 60 billion euros more than the total contract volume of the four previous governments between 2016 and 2023.
The largest portion of this is a seven-year framework contract worth 58 billion euros for the supply of large-caliber artillery ammunition. The contract was signed in December 2025 with ZVS Holding, a joint venture between the Slovak government 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 in 2025 was approximately 100,000 units of 155-mm ammunition per year. A new, 100-million-euro filling plant is expected to increase this to a maximum of 280,000 units. ICJK expresses doubt as to whether, even with this capacity, the contractually agreed quantities can realistically be met, especially if other customers are being supplied at the same time.
A spokesperson for CSG explained that the initial public offering (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 aligned with current and planned production capacities. Furthermore, the defense industry plays 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 of the IPO in advance.
Largest Defense IPO Worldwide
Euronext described CSG’s IPO as the world’s largest defense company IPO—measured by offering volume and market capitalization. With a market capitalization of approximately 32 billion euros, CSG is now the most valuable Czech company.
International banks such as JPMorgan, BNP Paribas, Jefferies, and UniCredit facilitated the transaction.
In addition, CSG is facing new allegations related to Tatra vehicle deliveries to the Czech and Slovak armies. An opposition politician claims that vehicles were resold through intermediary companies at inflated prices. CSG also rejects these allegations.
This article was produced in cooperation with our partner bne intelliNews
