The defense company KNDS is pushing ahead with its stock market plans and is apparently starting the first investor meetings for a possible IPO with a volume of up to 5 billion euros.
• KNDS probably starts investor meeting for IPO
• Planned IPO could apparently raise up to 5 billion euros
• Double listing in Paris and Frankfurt under discussion
The plans for the IPO of the German-French arms company KNDS are apparently becoming more concrete. According to a media report, the company has started its first investor meetings.
Investor meeting as the starting signal for the IPO
As Bloomberg reports, citing people familiar with the matter, KNDS is currently beginning its first meetings with potential investors. The aim is to assess the demand for a possible IPO, which could reach a volume of up to 5 billion euros or around 5.8 billion US dollars.
The conversations are therefore private and have not yet been finalized, which is why the informants wanted to remain anonymous. At the same time, the company is preparing for a possible stock market debut in the summer, it goes on to say – even if external factors such as geopolitical tensions have recently weighed on market sentiment.
Valuation up to 20 billion euros and double listing in Paris and Frankfurt
According to Reuters, the structure of the IPO is also taking concrete shape. Bankers therefore expect a double listing worth billions in Paris and Frankfurt am Main, which could value KNDS at around 20 billion euros. The plan is apparently to place around 25 percent of the shares.
KNDS CEO Jean-Paul Alary confirmed the general direction to journalists, according to Reuters: “There are no obstacles,” he said, adding that the IPO will take place as planned sometime in 2026 if market conditions allow. He left a specific date open.
Strategic importance for the Defense industry
KNDS’s IPO plans also have a political dimension. The company is a joint project between the German defense company Krauss-Maffei Wegmann and the French state-owned company Nexter and is therefore at the center of European security and industrial policy. According to Reuters, Berlin is aiming for a blocking minority of at least 25 percent, although the exact timing is still unclear. At the same time, the IPO should take place in an environment in which the European defense industry benefits from increased demand, but is also increasingly subject to political regulation.
However, according to KNDS’s assessment, a possible competitor such as Rheinmetall could not derive any strategic advantage from the IPO – CEO Alary rejected such speculation, according to Reuters.
IPO as a litmus test for Europe’s defense sector?
According to experts, the planned IPO of KNDS could be one of the largest IPOs in Europe in the coming years. Between geopolitical uncertainties, high valuation expectations and political influence, the IPO could become a yardstick for the future of the European defense industry.
Bettina Schneider, editorial team at finanzen.net
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