KNDS, the joint venture between Germany's Krauss-Maffei Wegmann and France's Nexter, has officially begun the process for an Initial Public Offering (IPO) in 2026. The company intends to pursue a dual listing on both the Paris and Frankfurt stock exchanges. This move is designed to support KNDS's long-term growth strategy by broadening its access to capital markets, thereby enabling continued investment in industrial capacity, technology, and innovation.
The decision to go public comes amidst surging demand in the defense sector, with NATO budgets expanding and European nations seeking to lessen their reliance on U.S. arms. KNDS, which produces a wide array of land systems including Leopard 2 main battle tanks and Boxer infantry fighting vehicles, recorded an order intake of €11.2 billion (approximately $13.1 billion) in 2024. The IPO is anticipated to unlock billions for the founding families' heirs, who currently hold half of the share capital and roughly half of the voting rights. The German government is also planning to participate in the float, potentially acquiring a significant stake, with Berlin reportedly aiming for a 40% stake.
The IPO could value the group at up to €20 billion (approximately $21.5 billion). Analysts have noted that while a public listing could expose KNDS to activist shareholders and stricter EU competition rules, the capital infusion is expected to fund new tank programs and expand export markets. KNDS has reportedly selected Bank of America Corp., Deutsche Bank AG, Goldman Sachs Group Inc., and Societe Generale SA as global coordinators for the IPO, with listing targeted as early as June or July of 2026.
