Tank Maker KNDS Delays Stock Listing, Citing Defense-Market Volatility
KNDS will monitor capital markets and resume the offering when conditions improve after investors cooled on defence stocks, Reuters reported.
- Franco-German defence group KNDS has postponed its planned stock market listing until market conditions improve, shelving what would have been one of Europe's largest defence IPOs.
- According to a Financial Times report, German owner families refused a valuation under €12.5 billion, despite earlier expectations that the Leopard 2 tank maker would be valued at around €15 billion.
- Investors have cooled on defence stocks amid shifting NATO spending expectations, with rival Rheinmetall seeing value drop recently and Czech defence group CSG trading below its Amsterdam issue price.
- In a written response, the German government said it respected the decision and remains committed to working with French partners, while KNDS stated it will "continue to monitor the capital markets conditions closely."
- Precedent exists, as German defence supplier Renk shelved its IPO in 2023 before reviving the deal four months later, suggesting a potential path forward if investor interest improves.
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The German-French armaments company KNDS does not go on the stock exchange for the time being.
Operationally KNDS wants to continue as before, even without an IPO. German politics, however, is denied the planned influence on the tank builder.
After long negotiations, the IPO was planned for mid-July, now the Panzer Group has cancelled it for the time being. It is the second fall in the German-French defence sector: Previously, the FCAS fighter aircraft project had failed.
Tank maker KNDS delays stock listing, citing defense-market volatility
PARIS — French-German tank maker KNDS delayed plans for a stock-market listing, citing market volatility for the European defense sector, with the company’s shareholders planning to resume the process for an initial public offering “upon the return of more favorable market conditions.”The maker of Germany’s Leopard tank and France’s Caesar self-propelled howitzer said it has “completed substantially” all the required preparations for its propose…
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