KNDS Announces Landmark IPO in Frankfurt and Paris

KNDS, the Franco-German maker of Leopard 2 tanks and Caesar howitzers, plans to go public with an IPO in Frankfurt and Paris, selling 20% of its shares. Germany and France will maintain equal stakes in the company. The move is part of a broader trend in the rising valuations of European defence firms.

KNDS, the Franco-German manufacturer of the renowned Leopard 2 tanks and Caesar howitzers, announced on Wednesday its intention to list shares in Frankfurt and Paris, marking a significant initial public offering (IPO) in the defence sector this year. The company aims to release 20% of its share capital, with all proceeds benefiting existing shareholders.

Valued at approximately 15 billion euros, KNDS stands as one of the largest defence IPOs in recent European history. This comes in the wake of Czech arms group CSG’s record-setting IPO in January, and German warship manufacturer TKMS's notable market debut. Germany plans to acquire a 40% stake at a value exceeding the IPO price, featuring a control premium and post-listing share performance considerations.

The IPO highlights ongoing volatility in the European defence market, stirred by geopolitical developments like Russia's invasion of Ukraine. Defence shares have seen fluctuation, with notable drops in stock prices like Rheinmetall's recent dip. Post-IPO, Germany and France will equally share a 40% stake in KNDS, ensuring parity and decision-making balance in the company.