KNDS Delays Planned Defense IPO Citing European Market Volatility

KNDS delayed its planned stock-market listing, citing volatility in the European defense sector. The company announced the decision Wednesday night, one week after stating it would proceed with the offering. KNDS said it had completed substantially all required preparations for listings in Paris and Frankfurt and had engaged extensively with investors.

Shareholders plan to resume the process once market conditions improve. The company stated it will continue monitoring capital markets and stand ready to restart the IPO as soon as conditions allow. Discussions with investors confirmed shared views on KNDS’s industry positioning and long-term strategy, the firm added.

Over the past month, shares of listed peers Rheinmetall fell 13 percent and Czechoslovak Group declined 17 percent. CSG, which completed the largest European defense IPO to date when it listed in Amsterdam in January, has dropped 44 percent from its offering price, reducing its market value by more than €11 billion to €13.8 billion.

The Financial Times reported that KNDS struggled to secure investor support for a valuation above €12 billion.

Under the original plan, French state-owned Giat Industries and German family-owned Wegmann & Co would sell about 20 percent of KNDS to institutional investors through private placements. Germany would acquire Wegmann’s remaining 40 percent stake via Kreditanstalt für Wiederaufbau, while France would retain its 40 percent holding through Giat.

KNDS and its shareholders said they remain aligned on priorities including customer delivery, European expansion, and development of innovative mission solutions.