KNDS, the Franco-German tank manufacturer, has postponed its initial public offering (IPO) due to significant volatility within the European defense sector. This decision comes after the company had completed most of its preparation phases for the listing, which aimed for a dual listing in Frankfurt and Paris and was expected to be one of Europe's largest debuts in recent years.
Key investors reportedly valued KNDS at less than €12 billion in preliminary talks. However, KNDS's German family shareholder, who holds a 50% stake alongside the French government, reportedly refused to proceed with an IPO at a valuation below €12.5 billion. This divergence in valuation expectations, combined with the broader market conditions, led to the delay.
The postponement was further influenced by a 19% drop in shares of Rheinmetall AG, a peer company, after Germany canceled a warship contract. KNDS, with almost 11,000 employees, reported €4.4 billion in revenue in 2025 and an order backlog of €33.1 billion as of December 31, 2025. Despite the delay, the company confirms its strong order backlog, profitable growth, and robust industrial ramp-up, and its shareholders intend to resume the IPO process when market conditions become more favorable. KNDS and its shareholders remain committed to their focus on customers, European expansion, and developing innovative solutions for European defense.
