PARIS — The French-German tank manufacturer KNDS has announced a delay in its plans for a stock-market listing, attributing the decision to ongoing market volatility in the European defense sector. The company stated that its shareholders intend to revisit the initial public offering (IPO) process once market conditions improve.
KNDS, known for producing Germany’s Leopard tank and France’s Caesar self-propelled howitzer, indicated it has made significant progress in preparing for its proposed IPO in Paris and Frankfurt. The company has been actively engaging with potential investors, as confirmed in a statement released on Wednesday evening.
This pause comes shortly after KNDS affirmed its commitment to pursuing the IPO, following a difficult week in which the share prices of its closest competitors, Rheinmetall and Czechoslovak Group, experienced significant declines. Although both companies’ shares have since rebounded, Rheinmetall’s stock has dropped 13% over the past month, while CSG has faced a 17% reduction.
“KNDS and its shareholders will continue to monitor the capital markets closely and are prepared to resume the IPO process as soon as conditions permit,” the company stated.
The Financial Times highlighted that KNDS is encountering challenges in convincing investors to support an IPO valuation exceeding €12 billion (approximately $13.7 billion). The latest listing in the European defense sector was that of CSG, which debuted in Amsterdam in January, marking the largest defense IPO at that time. Since then, CSG’s shares have plummeted nearly 44% from their initial offering price, leading to a reduction in its market valuation by more than €11 billion to approximately €13.8 billion.
As part of its IPO strategy, French state-owned Giat Industries and the family-owned German firm Wegmann & Co plan to sell about 20% of KNDS to institutional investors through private placements. Additionally, the German government is set to acquire Wegmann’s remaining 40% stake via Kreditanstalt für Wiederaufbau, while France will maintain a 40% stake in the company through Giat Industries.
KNDS also noted that discussions with investors revealed a shared optimism about the company’s unique positioning within the industry and confidence in its long-term strategy. The company and its shareholders remain aligned on key priorities, including enhancing customer service, expanding their presence throughout Europe, and accelerating the development of innovative mission solutions to bolster European defense capabilities.
