Czechoslovak Group has rejected allegations by short-seller Hunterbrook that it withheld material information from investors during its January IPO, one of Europe's largest this year. CSG's shares fell sharply on Monday following the report, which claimed omissions in the company's prospectus and a pattern of undisclosed insiders around its core subsidiaries.

The ammunition maker, valued at €30bn when it listed in Amsterdam, said it "stands by the integrity of its IPO documentation" and called Hunterbrook's characterisation "inaccurate." Shares are now down about 50 per cent since the IPO, trading at their lowest level. Hunterbrook alleged CSG's business model relies more on reselling ammunition than producing it, pointing to just one facility capable of assembling 155mm shells with maximum output of 280,000 rounds last year.

CSG rejected this, saying it uses multiple facilities in multiple countries and produced about 630,000 rounds, with 80 per cent being 155mm, and expects output to rise 20 per cent this year. The short seller also claimed CSG transferred 20-30 subsidiaries to a vehicle owned by CEO Michal Strnad before the IPO, with €275mn in receivables outstanding. CSG said the amount was "settled in full" during the first quarter.