Franco-German tank maker KNDS shelves €15bn IPO, delaying Berlin’s stake plan

IPO shelved amid market volatility

KNDS pulled back from its Frankfurt and Paris listing plans late on Wednesday, saying it would wait for more favourable market conditions. The manufacturer had nearly completed all preparations and conducted extensive investor discussions, which it said confirmed confidence in its long-term strategy. The announcement came less than two weeks before the targeted date, surprising markets.

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.

Ownership revamp on hold

The pause freezes a carefully negotiated ownership restructuring. Under the agreement, the founding Wegmann family would have fully exited, while the German and French states would each take a 40 % stake, with the remaining 20 % sold to institutional investors. Because the German state’s entry was tied to the IPO, Berlin will not acquire its board-level influence for now.

We remain interested in leading the company into a successful future together with our French partners.

The Wegmann family holding and the French state therefore stay as 50-50 owners for the foreseeable future.

Business as usual, says KNDS

A spokesperson stressed that the decision has no effect on operations or planned investments. The company could restart IPO work in as little as two weeks, she said, though it might also take significantly longer. KNDS employs about 11,000 people and reported revenue of €4.4 billion in 2025, with an order backlog of €33.1 billion at year-end.

Investors cool on defence stocks

The retreat reflects a broader chill in European defence equities. Shares of rival Rheinmetall have dropped sharply in recent days, and Czech defence group CSG – which listed in January at a €25 billion valuation – is trading below its issue price. Some investors signalled to KNDS that its expected €15 billion value might be too high; the German owners are reportedly unwilling to accept a valuation below €12.5 billion.

Past precedent offers a guide

The episode echoes German supplier Renk, which scrapped its IPO in 2023 only to relaunch four months later once defence stocks regained momentum. Whether KNDS follows a similar path depends on how quickly sentiment in the sector turns.