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Czech firearms maker CZG launches Prague share offering

CZG-Ceska Zbrojovka Group launched a public share offering on Tuesday, valuing the Czech firearms maker at up to 13.6 billion crowns ($587.37 million) under a full allotment of shares at the top end of the price range.

PRAGUE, Sept 22 (Reuters) - CZG-Ceska Zbrojovka Group launched a public share offering on Tuesday, valuing the Czech firearms maker at up to 13.6 billion crowns ($587.37 million) under a full allotment of shares at the top end of the price range.

The company will offer up to 12.99 million shares of new and existing shares. It set a price range of 290 to 370 crowns per share and expected trading in Prague to start on Oct. 2.

Up to 6.9 million shares will be new, CZG said in a prospectus published on Tuesday.

The gunmaker, with plants in the Czech Republic and United States, plans to use $40 million to $50 million (1.16 billion Czech crowns) of proceeds for the planned construction of a U.S. production facility in Little Rock, Arkansas.

The rest will be other corporate uses, including potential acquisitions, CZG said.

($1 = 23.1540 Czech crowns)

(1 Czech crown = $0.0432)

(Reporting by Jason Hovet and Jan Lopatka, editing by Louise Heavens)

((jason.hovet@thomsonreuters.com; +420 234 721 613;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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