KNDS NV, the Netherlands-based manufacturer of Germany's Leopard 2 tanks, is once again gauging investor interest for an initial public offering that could raise as much as €5 billion ($5.8 billion). This move comes after the company previously halted its IPO plans. The company is holding preliminary meetings with prospective investors as it prepares for a potential stock market debut this summer.
KNDS had initially planned a dual listing in Paris and Frankfurt for the summer of 2026 but postponed the process in July 2026, citing significant volatility in the European defense sector. A key issue was a valuation gap, with owners targeting around €15 billion while institutional investors indicated a ceiling of approximately €12 billion. This €3 billion difference reflected a broader downturn in defense equities, with competitor Rheinmetall, for example, having lost over 30 percent of its value since the beginning of 2026.
The German state's planned acquisition of a 40 percent stake in KNDS for up to €7.2 billion is conditional on a successful IPO. Without the flotation, this ownership change remains blocked. Despite the IPO being on hold, KNDS has been actively expanding and digitizing its production lines, leveraging a record order book of €33.1 billion.
While the IPO was previously postponed, KNDS and its shareholders stated their intention to monitor capital market conditions and resume the process when more favorable conditions arise. A resurgence of the IPO is now anticipated in September, with investor sentiment for European defense groups and ongoing NATO procurement discussions expected to influence the timing. KNDS reported €4.4 billion in revenue in 2025 and employs nearly 11,000 people.
