Michal Strnad’s fortune has risen to $37 billion—roughly 10% of the Czech economy—after a sharp surge in shares of his defense company on the first day of trading.
The 33-year-old owner of Prague-based Czechoslovak Group AS nearly doubled his wealth overnight: by 9:00 a.m. Amsterdam time, the shares were up about 28%. In the initial public offering, priced at €25 per share, the company and its owner raised €3.3 billion. Strnad inherited the business after his father transferred control of the company to him in 2018. According to the Bloomberg Billionaires Index, Strnad’s net worth stands at $36.9 billion.
Michal Strnad at the listing ceremony of CSG NV in Amsterdam.
Czechoslovak Group, or CSG, has faced the strongest demand for weapons since the end of the Cold War—after Russia sent troops into Ukraine nearly four years ago. The company has become one of the key suppliers of ammunition and armored vehicles to Ukraine and is seeking to capitalize on a rally in defense stocks amid fears in Europe that the United States could scale back its role in safeguarding the continent. Additional demand for arms is also being fueled by broader geopolitical instability—from Washington’s demands over Greenland to the removal from power of Venezuelan president Nicolas Maduro.
The proceeds from the deal, Strnad plans to channel into his family office, which will invest in a portfolio of companies outside the defense sector to avoid conflicts of interest.
“We already have a team in place—we’re not starting from scratch, but this will be a powerful injection for them,” he told Bloomberg News on Friday at the Amsterdam Stock Exchange. “We have a pipeline of dozens of opportunities that we are either monitoring or already working through.”
According to the Bloomberg Billionaires Index, Strnad is the world’s richest defense magnate. He also ranks third among the wealthiest people on the planet under 40—behind Walmart Inc. heir Lukas Walton, whose fortune is estimated at about $49 billion, and Red Bull heir Mark Mateschitz, with an estimated net worth of $38.4 billion. He has overtaken Chen Tianshi, co-founder of artificial-intelligence computing chipmaker Cambricon Technologies, whose fortune is estimated at $23.4 billion.
Michal Strnad cuts a cake during the IPO at Euronext Amsterdam.
Strnad stands apart from most contemporary billionaires—his wealth is tied not to technology or artificial intelligence, but to industrial manufacturing. Three decades ago, under his father, CSG began by trading Soviet military equipment. While Michal was still in elementary school, he was already learning the mechanics of a business producing armored vehicles. At 21, he became the company’s chief executive, and five years later its owner.
The Pandur 8×8 EVO wheeled armored vehicle produced by Czechoslovak Group.
Strnad expanded the company into a diversified manufacturer—ranging from small- and large-caliber ammunition to combat vehicles, military and civilian trucks, and other equipment—exported to around 70 countries worldwide. The group employs more than 14,000 people across Europe, the United States, and India.
“He has an exceptionally broad perspective,” says Slovakia’s defense minister Robert Kalinak, who has worked with the Strnad family since 2008, when it began investing in the country’s defense manufacturing sector. “I can’t recall a single instance when he said he needed to clarify something, check something, or come back to it later.”
Strnad is an early riser, typically starting his day at 5:00 a.m., and dealmakers describe him as a tough negotiator. He knows his business inside out and regularly travels to meet clients, who often include government officials.
The billionaire has also built ties with other Czech magnates. Last year, he agreed to buy a stake in the operator of the luxury Four Seasons hotel in Prague from investment firm PPF Group NV, owned by fellow Czech billionaire Renata Kellnerova. He has also joined the ranks of football club owners, acquiring a controlling stake in FC Viktoria Plzen.