KNDS Postpones Planned IPO
KNDS announced that it is postponing the initial public offering that had been scheduled for July on the Frankfurt and Paris exchanges. The decision was taken after shareholders communicated that the current volatility in the European defence sector makes market conditions unsuitable for a successful listing.
The company had initiated the IPO process at the end of June, following bilateral agreements between Germany and France and an arrangement with the Wegmann founding family that would grant joint control of KNDS to the two nations. Preparations for the listing were reported as substantially complete.
A key factor influencing the postponement was the sharp decline in European defence equities, highlighted by a 19% fall in Rheinmetall AG shares on the day KNDS announced its IPO plans, after Germany cancelled a warship contract. This drop amplified concerns over the appropriate valuation of the Franco‑German defence group.
Financial Times reporting indicated that some investors in preliminary discussions believe the group’s valuation could be below €12 billion for a July IPO. KNDS’s principal German family shareholder, which holds a 50% stake, together with the French government’s 50% holding, has made clear that it will not proceed with an offering priced under €12.5 billion.
The postponement is notable because defence had been one of the few bright spots in an otherwise sluggish year for European IPO activity.
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