FRANKFURT/PARIS, June 24 (Parliament Politics Magazine) – KNDS, the prominent manufacturer of Leopard 2 tanks and Caesar howitzers, has confirmed its intention to list shares on the stock exchanges in Frankfurt and Paris.
This move marks a significant addition to the series of initial public offerings from the European defence industry throughout 2026.
The company plans to offer 20 percent of its share capital during the upcoming IPO. According to official statements, all proceeds from this sale will be distributed to existing shareholders. This listing is expected to rank among the largest defence sector offerings in Europe in recent years.
Market estimates suggest the company could achieve a valuation of approximately 15 billion euros. This figure aligns with previous reports regarding negotiations for Germany to acquire a stake in the business. Sources indicate that the total valuation for such an acquisition has previously been estimated between 15 billion and 18 billion euros.
“The company will sell 20% of its share capital in the IPO, with proceeds going entirely to existing shareholders,” the report states.
This development occurs as the broader European defence sector navigates a period of market volatility. While the industry experienced a substantial rally following the invasion of Ukraine and shifting foreign policy priorities in the United States, recent trends have shown cooling interest and fluctuating stock prices for major defence firms.
A core component of this listing is the maintenance of equal influence between France and Germany. Following the IPO, both nations are set to hold 40 percent stakes in the manufacturer. This arrangement is designed to uphold political and industrial balance between the two states.
The agreement includes strict provisions for the future of these holdings. Over the next decade, neither country may reduce its shareholding below 30 percent without the express consent of the other party. Furthermore, as long as these stakes remain above the 30 percent threshold, both governments retain the right to appoint three members each to the board of directors. Major structural decisions will require consensus between the two parties, ensuring that the company remains under the cooperative oversight of both nations.
KNDS was originally formed in 2015 through the merger of the French company Nexter and the German manufacturer Krauss-Maffei Wegmann. The German Armed Forces currently stand as the primary client for the group’s diverse range of land defence systems and equipment.
