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Czech firearms maker CZG likely to scale back Prague share offer - sources

PRAGUE, Oct 1 (Reuters) - Czech firearms maker CZG-Ceska Zbrojovka Group is likely to cut the size of its Prague share offering by more than half after closing its books with weaker-than-expected demand on Thursday, according to three sources with knowledge of the deal.

CZG, which undertook a technical listing earlier this year whereby shares were admitted to trading without raising funds, had aimed to raise up to 4.8 billion crowns ($209.8 million) through the sale of new and existing shares and a possible over-allotment.

It set a price range of 290 to 370 crowns per share when it launched the offering on Sept. 22.

The three sources told Reuters the price would likely fall to the lower end of that range and the offer scaled back to comprise mostly all new shares.

The company, which aims to use proceeds of the deal to finance U.S. expansion, had offered up to 6.9 million new shares out of its total offer of 12.99 million.

However the details of the deal had not been finalised on Thursday evening and there was still a chance the situation could change, according to the sources.

CZG declined to comment.

The company, which has operations in the Czech Republic and United States, had sought a market valuation of at least 10.7 billion crowns with the full offering being sold.

The company is a wholly-owned unit of holding company Ceska zbrojovka Partners, whose main owner is Rene Holecek, listed as the 30th richest Czech citizen by Forbes in 2019.

The share offer in Prague, the first since Moneta Money Bank sold shares in 2016, comes at a time when some companies are due to de-list from the stock market.

$1 = 22.8830 Czech crowns Reporting by Jason Hovet; Editing by Jan Lopatka and Pravin Char

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