Firearms manufacturer CZG – Ceska zbrojovka Group SE, has launched a public offering of shares on the Prague Stock Exchange.
CZG, whose ordinary shares began trading on Prime Market on 1 June 2020, set a price range of 290 to 370 crowns per share with trading to start on 2 October. The group will offer 12.99 million shares, of which up to 6.9 million will be new. A free float between 23 and 34 percent of the offer price is expected. Investors can place their orders from today.
The expected end is on 1 October at 17:00 CET for institutional investors and the same day at 16:00 for retail investors. The company may decide to extend or shorten the offer period. The minimum order size is ten shares, the maximum order size is not limited.
The company intends to use $40 to $50 million to finance expansion in the US, including constructing its new manufacturing plant in Little Rock, Arkansas. The remaining part of the net income will strengthen working capital and other general company purposes, including financing possible acquisition opportunities.
Each share is associated with the right of its holder to the payment of a dividend. Under its dividend policy effective from the financial year ended 31 December 2020, the Company intends to target an annual dividend payment of 33 percent of consolidated net profit for that financial year. Dividends will be paid in crowns.
“We at Česká zbrojovka Group are very excited about offering our investors the possibility of being part of our story and our success. We believe that we, together with our investors, can play an important role in the expected consolidation of the small arms industry, become a key partner for military and law enforcement customers and be recognized as a premium brand of firearms in Europe and the United States. The proceeds we are aiming to raise from the Offering will be used mostly to build additional production capacities in the United States in order to meet high customer demand for our products in the USA,” Lubomír Kovařík, President and Chairman of the Board of Directors of CZG, said.
“Our financial results and achievements in the last years clearly demonstrate that CZG is perfectly placed to successfully achieve its vision thanks to its robust business model, track record of strong growth, solid financial performance, and overall market position. The US expansion plan clearly confirms our commitment to become a truly global player in the firearms industry,” Jan Drahota, Vice-Chairman, said.
Česká zbrojovka is a leading European manufacturer of small arms for the armed forces, personal defense, hunting, sport shooting, and other civilian uses. The company is headquartered in the Czech Republic and has manufacturing facilities in the Czech Republic and the United States.
Česká zbrojovka’s shares were traded on the Prague Stock Exchange from the mid-1990s until November 2007. After the crowding out of the minority shareholders, they ended up on the stock exchange as the primary owner, the Prague company EXIMAT. CZG shares were rarely traded in recent years before being listed on the PSE.
The company operates in 90 markets worldwide. It employs about 1,625 people in its operations in the Czech Republic, Germany, and the USA. CZG manufactures pistols, submachine guns, and sport rifles. The company also has holdings in the automotive and aerospace industries.
CZG is owned by Ceska Zbrojovka Partners SE, controlled by René Holeček. Approximately 10 percent of the shares belong to members of the Board of Directors, senior employees, and Česká zbrojovka.
CZG reported record profits in 2019 of CZK 743.3 million and revenues of CZK 5.96 billion.