The long-awaited initial public offering of KNDS, the Franco-German maker of Leopard 2 tanks and Caesar howitzers, has been shelved. The Amsterdam-based defence group confirmed the postponement late Wednesday, citing turbulence across European defence stocks. Yet while the IPO sits in limbo, the company is pressing ahead with a 40% workforce expansion at its Görlitz plant in eastern Germany, where headcount will rise from 300 to 420 by next spring.
The delay stems from a yawning gap between what the current owners want and what institutional investors are willing to pay. Management was seeking a valuation of at least €12.5bn, but major funds drew the line at roughly €12bn, according to people familiar with the process. Rather than sell
“This is a pricing question, not a rejection of the business model,” said Morningstar strategist Michael Field in an interview with CNBC. He noted that KNDS could still complete the IPO later this year “when and if” sentiment improves, adding that floating at such weak market conditions would be counterproductive. The precedent of German gearbox maker Renk, which postponed its 2023 IPO and successfully listed four months later, offers a hopeful parallel.
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The delay also freezes a historic restructuring of KNDS’s ownership. Currently split 50/50 between the French state and Germany’s Wegmann family, the plan called for Berlin to acquire a 40% stake via state lender KfW for €7.2bn — a transaction already approved by the Bundestag. After the IPO, Paris and Berlin would each hold 40%, with the remaining 20% in free float. The German economy ministry responded swiftly to the postponement, stressing that Berlin remained committed to steering KNDS toward a successful future alongside its French partners. The ministry noted that earlier negotiations on the ownership structure had already safeguarded the security interests of both countries.
Operationally, there is little to complain about. KNDS posted €4.4bn in revenue for fiscal 2025, up 16% year-on-year, with EBIT of €661m and free cash flow of €980m. The order backlog hit a record €33.1bn — a ten-year visibility that would normally make a defence contractor a market darling. Yet the sector is in turmoil. Rheinmetall shares collapsed 19% on the same day KNDS announced its delay, after Germany cancelled a warship order. Czech rival CSG trades roughly 44% below its January IPO price. Until European defence equities stabilise, any new listing faces an uphill battle.
The next realistic window for KNDS to revive its dual listing in Frankfurt and Paris, according to financial analysts, would open in September 2026. Until then, the tank builder remains in private hands, powered by a record order book and a production site in Görlitz that is visibly expanding — proof that industry momentum and capital market timing don’t always travel in the same direction.
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