European defence: KNDS prepares for its stock market flotation
The tank manufacturer has begun the process of listing on the Frankfurt and Paris stock exchanges – Private shareholder Wengmann&Co will sell a further 40 per cent to the German government following the IPO
Tank manufacturer KNDS has launched the process for an initial public offering in Frankfurt and Paris, a crucial step in its development as a pan-European defence company. The defence company’s current shareholders – the French State and Wegmann & Co, a family-owned holding company, will offer a 20 per cent stake in the company, according to a statement released on Wednesday. The IPO process will reshape the shareholding structure of one of Europe’s most strategically important defence companies, effectively transforming it into a Franco-German joint venture. KNDS is the latest defence group to enter the European capital markets in search of a listing, buoyed by regional governments’ commitment to increase spending on their armed forces. Wegmann & Co, a vehicle representing the company’s family owners who currently hold half of KNDS, will sell a 40 per cent stake to the German state, subject to the IPO. The French state, which owns the other half of KNDS, will sell shares in the offering, so that it too will hold a 40 per cent stake.
Germany and France announced on Monday that they had agreed on a governance structure for the company under which each party will hold an equal stake. Once listed, KNDS will be based in the Netherlands and will be jointly owned by the French and German governments, with a 20 per cent free float on two European stock exchanges. The structure of the deal highlights the growing recognition in European capitals of the importance of retaining key technological and security assets. KNDS operates across five divisions: systems, munitions, equipment, training and maintenance. Its products include main battle tanks, armoured personnel carriers, mobile bridges and robotic vehicles. It also manufactures large-calibre ammunition to supply these combat vehicles. As a listed company, its main competitors will include Rheinmetall and CSG.
The Amsterdam-based company generated revenue of €4.4 billion in 2025, up by around 16 per cent on the previous year, according to its latest results. The order book, a key indicator providing an insight into the company’s work pipeline, rose to €33.1 billion at the end of last year, compared with €23.5 billion the previous year.The report shows that the company works closely with the Ukrainian army and with around 40 armed forces in total worldwide. It currently employs around 11,000 staff, a figure which, according to the company, will continue to grow this year in line with increased production and investment in research and development. Bank of America Corp., Deutsche Bank AG, Goldman Sachs Group Inc. and Société Générale SA are acting as lead managers for the offering.
