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Czech firearms maker CZG to list on Prague bourse, may offer shares later this year

PRAGUE, May 31 (Reuters) - Czech firearms maker Ceska zbrojovka Group SE will make a technical listing of its shares on the Prague Stock Exchange on Monday with the view to a potential public offering later, the company said on Sunday.

The handgun and rifle maker is not making any share offering at present but said in a prospectus that a public offering that may include existing and new stock may be carried out between the third quarter of 2020 and the second quarter of 2021, subject to market conditions and other factors.

The company had earnings before interest, tax, depreciation and amortisation of 1.341 billion crowns ($55.35 million) in 2019, net profit from continued operations of 734 million crowns and diluted earnings per share of 25 crowns, the prospectus said.

The traditional gun maker produces the bulk of its production at the eastern town of Uhersky Brod. It has also budgeted $60-70 million to build a manufacturing plant in Little Rock, Arkansas, to expand in the United States and enter the military and law enforcement market.

The plant is due to be operational in 2022. The prospectus said the company had so far made no changes to the project but said potential impact of the COVID-19 pandemic could influence its implementation.

The board proposed a dividend of 328.3 million crowns earlier this month after a 560 million crown dividend last year, the prospectus said.

The firm is ultimately 90% owned by shareholder Rene Olecek, with the rest held by management. ($1 = 24.23 crowns) (Reporting by Jan Lopatka; Editing by Nick Macfie)

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