KARO Leather Ascends to Prague Stock Exchange’s Prime Market
Prague, Czech Republic – February 24, 2026 – KARO Leather, a Czech leather processor, has successfully transitioned its shares to the Prime Market of the Prague Stock Exchange, marking a significant milestone in the company’s growth trajectory. The move, approved by shareholders last June, aims to enhance liquidity, transparency, and attract foreign investment.
A Rapid Rise for KARO Leather
KARO Leather’s journey began in 2019 with an initial public offering on the Start market, raising 40 million Czech crowns at a valuation of 120 million crowns. Since then, the company has experienced substantial growth, becoming one of the most dynamic firms on the Czech capital market. Capital raised through the stock exchange has totaled 700 million crowns, facilitating expansion of its production facilities.
Financial Performance and Growth
The company’s market capitalization has surged to approximately 1.2 billion crowns, nearly tenfold its initial valuation. Gross operating profit (EBITDA) has risen dramatically, from 17 million crowns in 2018 to 97.5 million crowns in 2024, with continued growth in fiscal year 2025. The value of KARO Leather shares has more than quadrupled, currently trading around 170 crowns, up from the initial issue price of 40 crowns in November 2019.
Expansion and Modernization
The capital infusion has enabled KARO Leather to expand its original factory in Boršov and acquire a brownfield site in Brtnice, revitalizing the local leather industry with a modern production facility. The company currently operates production plants in both Boršov and Brtnice, processing beef and buffalo leather.
Leadership Perspectives
“Prime Market is a natural next step for KARO. We believe that it will bring our investors higher liquidity, a new level of transparency and a platform for further growth. We hope that it will likewise open the door to foreign investors,” stated Jakub Hemerka, a board member of KARO Leather. František Bostl, director of Starteepo, highlighted KARO’s unique entrepreneurial story, noting its transformation from a micro-firm to a leading Czech company.
Company History
The KARO group’s origins date back to the mid-1990s, initially focusing on leather trading for the furniture industry. The Boršov production plant was established in 2015, followed by the Brtnice facility in 2023.