In a few weeks, the stock market will welcome a new defense corporation. Tank manufacturer KNDS is set to go public. On Wednesday, the defense sector mainly drove trading movements.
The German-French defense company KNDS is preparing to go public. Shares of the manufacturer of battle tanks and artillery systems will be listed through a dual listing in Frankfurt and Paris, as announced by the company on Wednesday in Amsterdam.
Further details regarding pricing and scheduling will be provided in the stock prospectus. CEO Jean-Paul Alary mentioned in a press conference, “We expect the IPO in the coming weeks.” Among stock traders, July 13 is considered the likely start date, as the Paris Exchange goes into summer break afterward.
Germany and France on Board
The IPO of KNDS was anticipated and is considered one of the largest European IPOs in the defense sector in recent years. It followed an agreement between the governments in Berlin and Paris about the future ownership structure of the company, which is currently owned by the French state and the family behind the arms manufacturer Krauss-Maffei Wegmann.
Subsequently, the Federal Republic of Germany and the French state will each acquire a 40% stake in KNDS. The remaining 20% is set to be sold to institutional investors during the IPO.
Benefiting from the Defense Boom
KNDS emerged in 2015 from the merger of Krauss-Maffei Wegmann and the French company Nexter, and is counted among Europe’s leading land systems providers. Its portfolio includes the Leopard 2 battle tank and the Caesar artillery system. The company claims to supply more than 40 armies worldwide.
The tank manufacturer is significantly benefiting from the rearmament in Europe. Last year, KNDS achieved a revenue of €4.4 billion, 16% higher than in 2024. The EBIT stood at €661 million. For the current year, the company is targeting a revenue growth of 30%.
Defense Stocks Fall
News in the European defense sector caused price declines on the stock market. Thales and BAE Systems each registered about a 2% drop.
Even more pressure was felt on the stocks of Germany’s largest defense corporation. Rheinmetall’s shares plummeted after reports indicated a reversal in the federal navy’s frigate plans. They announced they will no longer procure F126-class ships, which affected Rheinmetall as it was on the verge of taking over the F126 frigate program from the Dutch shipbuilder DSNS.
TKMS Benefiting from Canceled Frigate Plans
Conversely, shares of TKMS saw double-digit gains. The Thyssen Marine subsidiary is set to deliver eight MEKO frigates to the navy for a total of around €11.6 billion. Overall, the market appears weak, chiefly driven down by the declining price of Rheinmetall, impacting the German stock index.
