KNDS: German-French tank manufacturer postpones IPO
The German government had been set to purchase a 40% stake in KNDS, but the prerequisite stock market flotation has been postponed. Meanwhile, a German
The German government had been set to purchase a 40% stake in KNDS, but the prerequisite stock market flotation has been postponed. Meanwhile, a German drone start-up has raised $1 billion in fresh funding. Franco-German arms manufacturer KNDS has announced that it is postponing a planned stock market flotation which had been set to enable the German government to take a 40% stake in the company. In a statement, KNDS put the postponement down to the current "volatility of the European defense sector" and said it was waiting for "more favorable market conditions." KNDS, which produces German Leopard-2 and French Leclerc battle tanks, among other weapons systems, is currently owned 50-50 by the French state and the German Wegmann Group. The initial public offering (IPO) in Paris and Frankfurt was set to see the French government reduce its shareholding to 40% and the German government take over 40% of the Wegmann stake for an estimated €7.2 billion ($8.25 billion), according to Der Spiegel magazine. The remaining 20% was to be floated publicly. A precise date for the IPO hadn't officially been set, but German Defense Ministry documents seen by the AFP news agency had suggested early July. But the whole process has now been postponed.
"KNDS and its shareholders will continue to carefully monitor the conditions on the capital markets," read a statement from the company, adding that it intends to "relaunch the IPO as soon as market conditions allow." German arms exports: No more rules? To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video KNDS: German government remains interested in stake The German government said it respected the company's decision to postpone the flotation and insisted that it remained committed to the project. "We remain interested in leading the company towards a successful future together with our French partners," a Defense Ministry spokeswoman told AFP in Berlin on Thursday, adding that the government would "continue to monitor and evaluate" the situation. Formed in 2015 through the merger of German family-owned firm Krauss-Maffei Wegmann and French state-owned weapons maker Nexter, KNDS is Europe's biggest tank manufacturer. The company employs around 11,000 people and reported revenue of €4.4 billion ($5 billion) in 2025. It is headquartered in Amsterdam, in the Netherlands, with its German operations based in Munich. The KNDS flotation was expected to be one of the largest in the European defense sector in recent years.
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