Colt CZ Group SE, the Czech Republic-based parent of the Colt, CZ, Sellier & Bellot, 4M Tactical, Spuhr, and SwissAA brands, announced it plans to request shareholder approval to proceed with a Dual Listing on Euronext Amsterdam, in addition to its current listing on the Prime Market of the Prague Stock Exchange, and a capital increase. The listing on Euronext Amsterdam is intended to broaden Colt CZ’s visibility among the global investor community and enhance the liquidity of its shares.
“Colt CZ is a leading player in the global firearm and ammunition space, operating in highly attractive end markets underpinned by secular and structural growth trends, particularly in defense and security. The dual listing is a natural next step in further development of Colt CZ as a global leader in the sector,” commented company CEO Radek Musil.
Since the firearms, ammunition and energetic nitrocellulose manufacturer’s listing on the Prime Market on the Prague Stock Exchange in 2020, the company said “it has delivered a revenue CAGR (compound annual growth rate) of 34.6 percent, driven by a combination of organic growth and successful acquisitions, such as American Colt and its subsidiary Colt Canada, Sellier & Bellot, or swissAA, thereby creating meaningful shareholder value.”
“In view of the company’s substantial development, as well as its further growth initiatives and ambitions, together with expected development of the Energetics segment, which includes the recently acquired Synthesia Nitrocellulose and Synthesia Power, the envisaged Dual Listing on Euronext Amsterdam and capital increase represent a logical next step for the company,” Colt CZ said in a media release.
The company said the “completion of the Dual Listing on Euronext Amsterdam is currently planned to occur after shareholders’ approval, subject to satisfaction of certain customary requirements, marking a significant milestone in the company’s continued development as a publicly listed Group.”
“The existing listing in Prague will remain strategically important and an integral part of the company’s capital markets presence. The shares are intended to be fully fungible between both exchanges, the company added.
The net proceeds from the planned capital increase could be used for further strategic investments, acquisitions, and development, including:
- Strategic investments in continued technological modernization and production capacity increases.
- Strengthening innovation capacity and research and development.
- Personnel and organizational strengthening.
- Targeted and disciplined acquisition of manufacturers of products complementary to Colt CZ Group’s product portfolio.
- Partial reduction of the company’s existing debt.
Subject to market conditions, the company said it may seek to complete the capital increase as early as the first half of this year, while retaining full flexibility on timing, including the option to execute the transaction at a later stage.
The company has appointed advisors to support the proposed Dual Listing and planned capital increase.
Image courtesy Sellier & Bellot/Colt CZ
