A&O advises Ceská zbrojovka Group SE on its initial public offering and listing on the Prague Stock Exchange
27 October 2020
Allen & Overy advised CZG – Ceská zbrojovka Group SE (CZG), a leading European producer of firearms, on its initial public offering and the listing of its shares on the Prime Market of the Prague Stock Exchange.
In October 2020, CZG completed its initial public offering of 3,080,000 shares, including 2,800,000 new shares and 280,000 existing shares held by Česká zbrojovka Partners SE. The offering comprised a public offering in the Czech Republic and private placements with institutional investors globally, including in the U.S. The shares were sold at a price of CZK290 per share, resulting in total proceeds of CZK812 million.
CZG, one of the leading European producers of firearms for military and law enforcement, personal defence, hunting, sport shooting and other civilian uses, is headquartered in the Czech Republic, with production facilities in the Czech Republic and in the U.S. The proceeds will primarily contribute to CZG’s strategy to expand its presence in the U.S. by constructing a new production facility in Little Rock, Arkansas, which will serve as CZG’s North American headquarters and second major production facility, in addition to its existing main facility in Uherský Brod.
Česká spořitelna, a.s., Komerční banka a.s. and Société Générale acted as joint global coordinators and joint bookrunners. WOOD & Company Financial Services, a.s. acted as a joint bookrunner.
Petr Vybíral, partner and head of the Banking and Capital Markets practice of Allen & Overy in Prague, commented: “We are proud to have advised CZG on this offering and listing of shares, which has boosted the company’s capital for further growth and expansion in accordance with its strategic plans. The deal represents one of the very few bigger IPOs on the Czech market in recent years, and we see it as a great promise of more deals to come in the near future.”
Marc Plepelits, partner and head of the U.S. Corporate Finance team of Allen & Overy in Frankfurt, commented: “We are delighted to have helped our client CZG to access the capital markets and to finance its expansion plans.”
The A&O team was led by associate Jana Chwaszcz and partner Petr Vybíral (both International Capital Markets, Allen & Overy in Prague) and also included partner Marc Plepelits and senior associates Rita Nicole Thomas and Martin Schmidt (all U.S. Corporate Finance, Allen & Overy in Frankfurt) and junior lawyer Denisa Jonášová (International Capital Markets, Allen & Overy in Prague). Partner James Roe advised on English law.