TKMS shares are scheduled to be traded on the Frankfurt Stock Exchange for the first time on October 20th. What investors should know about the IPO of Germany’s largest naval shipbuilder.
• Group restructuring: thyssenkrupp spins off TKMS
• IPO should open up growth prospects for TKMS
• Benefiting from the current arms boom
thyssenkrupp wants to take its subsidiary TKMS (thyssenkrupp Marine Systems) public through a spin-off. The timing for this is good because the company is benefiting enormously from the historically high defense spending. As a result, the order backlog currently amounts to an impressive around 18 billion euros.
thyssenkrupp spin-off TKMS shares on the Frankfurt Stock Exchange
As the MDAX group announced, the initial listing in the Prime Standard of the Frankfurt Stock Exchange is planned for October 20th. But even after this step, the company will still be part of the thyssenkrupp group, because thyssenkrupp AG wants to retain a majority stake of 51 percent through a new holding company. The TKMS share will also be listed in the MDAX for one day on October 20th.
The remaining 49 percent of the 63.52 million TKMS shares automatically go to the thyssenkrupp shareholders in proportion to their shareholding: the shareholders of the Essen-based parent company receive one share in TKMS for each 20 thyssenkrupp shares and thus become direct shareholders of the spun-off marine shipbuilding company. The relevant allocation date falls on October 17th when it is entered in the commercial register.
Great federal influence
There are currently no plans for the state to participate, but according to “Handelsblatt”, the federal government has secured extensive rights and influence over the important arms company: For example, if five percent or more of a security-relevant company is to be sold, the federal government has a right of first refusal and for sales of 25 percent or more, the federal government has a right of veto. In addition, the federal government has secured a seat on the future ten-member TKMS supervisory board.
Advantages of the independence of TKMS shares through an IPO
As thyssenkrupp boss Miguel López explained at the last general meeting, TKMS will gain direct access to the capital market by becoming independent and can therefore drive investments in new technologies and markets on its own. In addition, the stock market listing makes the value of the company visible to the outside world, said the thyssenkrupp boss.
Furthermore, the spin-off should give the division greater entrepreneurial freedom in order to be able to grow better. “We are giving the company the entrepreneurial freedom to act faster, invest more specifically and further expand its leading position,” said López.
TKMS shares about to pay a high dividend?
As can be seen from a presentation at a capital market day, the division expects its addressable market to double by 2033. TKMS’ central strategic goal is to increase the adjusted medium-term EBIT margin to more than 7 percent, after it was last at 5.5 percent in the third quarter. The company also intends to distribute 30 to 50 percent of the net profit due to shareholders as dividends.
Leading submarine shipyard
TKMS positions itself as a “maritime powerhouse” with over 185 years of experience and claims to be the world market leader for non-nuclear submarines, but also builds other warships such as frigates and corvettes as well as sonars. The company employs over 8,500 people and has shipyard locations in Kiel, Wismar and Itajaí, Brazil. Other TKMS locations are located in Hamburg, Bremen and Emden, among others.
After sales of around 2.0 billion euros in the 2023/24 financial year, the management team around CEO Oliver Burkhard – the former thyssenkrupp labor director – is aiming for further growth through operational excellence and a focus on technological development, especially in the areas of submarines, surface ships and electronics.
Editorial team finanzen.net / dpa-AFX / Dow Jones Newswires
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