KNDS Delays Defense IPO Citing Market Volatility

KNDS delayed plans for a stock-market listing in Paris and Frankfurt, citing market volatility for the European defense sector. The company said it has completed substantially all required preparations and will resume the process when conditions allow.

The announcement came one week after KNDS stated it was proceeding with the listing. Shares in listed peers Rheinmetall and Czechoslovak Group fell last week before recovering, though both remain down over the past month.

KNDS said discussions with investors confirmed support for its industry positioning and long-term strategy. The company and its shareholders remain aligned on priorities including customer delivery, European expansion, and development of mission solutions.

As part of the listing plan, French state-owned Giat Industries and German family-owned Wegmann & Co planned to sell about 20 percent of KNDS to institutional investors. The Federal Republic of Germany was to buy Wegmann’s remaining 40 percent stake via Kreditanstalt für Wiederaufbau, leaving France with a 40 percent holding through Giat.

The Financial Times reported that KNDS struggled to secure investor backing for a valuation above €12 billion. The most recent European defense IPO was Czechoslovak Group’s listing in Amsterdam in January, which was then the largest defense IPO ever. Shares in that company have since fallen about 44 percent from their IPO price.

“KNDS and its shareholders will continue to monitor the capital markets conditions closely and stand ready to resume the IPO process as soon as market conditions allow.”