SMAG Mobile Antenna Masts AG, a German defense contractor, saw its stock decline on its first day of trading on the Frankfurt Stock Exchange's "Scale" segment. The initial public offering (IPO) priced shares at EUR 46 each, the lower end of its target range. The company, which manufactures mobile antenna masts for military use, sold shares worth EUR 129.6 million in total, with EUR 29.6 million going directly to SMAG for expansion and the remainder going to its financial investor, Aequita, which reduced its stake to 50.1%. The company was valued at approximately EUR 260 million at the offering price.
The decline in SMAG's shares follows a trend observed in the German defense industry this year. While two other German defense players, Gabler and Vincorion, also went public, the German-French tank manufacturer KNDS postponed its IPO due to lower-than-expected investor valuations. This suggests a potential cooling in investor enthusiasm for defense stocks, despite the company's strong fundamentals.
SMAG, founded in 1974, employs 170 people and has an order backlog of EUR 1.4 billion. Last year, its revenue increased from EUR 27 million to EUR 34 million, and it aims to reach EUR 55 million to EUR 60 million this year. The company expects an adjusted operating profit margin (EBIT margin) of 19% to 21% in 2026. Despite these positive indicators, the market's reception to SMAG's debut was tepid, echoing broader investor sentiment regarding defense sector valuations.
