Colt CZ Group has raised just under US$96 million in equity through an ABB

October 2024 — Colt CZ Group has raised just under US$96 million (€89 million) in equity through an accelerated bookbuild (ABB) offering of 3.9 million shares, representing 6.9% of the existing capital.

The company received the entire proceeds of the ABB, resulting in the strengthening of the company’s equity, the comprehensive settlement of the Sellier & Bellot acquisition, accelerated debt reduction and strategic investments and acquisitions. The majority shareholder, Česká zbrojovka Partners SE, participated in the ABB and will retain 51.8% of the company’s shares.

Colt CZ Group is a European small firearms producer. It is a premium brand with sales in almost 100 countries. The company’s products are used for military and law enforcement (MLE), personal defense, hunting, sport shooting and other civilian use. Colt CZ is continuously developing its offering and, together with dedicated M&A, aims to become a one-stop shop for MLE clients, as well as a leading player in the consolidation of the small firearms industry. Recent acquisitions include Sellier & Bellot, a small arms ammunition producer, in 2024 and Colt Holding Company LLC, one of the world’s leading designers, developers and manufacturers of firearms, in 2021.

Our role in the transaction

Oaklins’ team in the Czech Republic acted as sole global coordinator in this transaction. The transaction focused on Czech, US, European and other institutional investors, Czech family offices and high-net-worth individuals (HNWI). The syndicate, led by the Oaklins team, secured orders from 27 institutional investors and numerous HNWIs based in the Czech Republic. This indicates that local investors have a strong appetite and ability to provide substantial demand, even for large transactions on the Prague Stock Exchange. Oaklins’ team in the Czech Republic also engaged one of the leading Czech brokers as a selling agent to tap the new, non-institutional sector. The books were covered and closed with a comfortable level of oversubscription at the deal price. Despite the large offer size, the Oaklins team skillfully navigated the pricing, using the oversubscription to increase the offer price. The ABB was priced at US$24 (CZK 575) per share, achieved a 7.1% discount on the last pre-ABB closing price and 4.5% on the trade date. The team successfully completed the ABB, raising the largest volume of proceeds from the sale of the company’s shares to date. This surpassed all the previous ABBs combined, as well as ensuring a good post-transaction share price performance. As a result of the transaction, the free float increased to 23.8%, leading to a more liquid stock appreciated by investors, proven by the post-ABB stock performance.