KNDS: The defense giant revives its IPO – How to prepare?

The manufacturer of the Leclerc tank and Caesar cannon is preparing its return to the stock market. Postponed in July due to a lack of agreement on valuation, the KNDS IPO could relaunch in the second half of September with a target valuation of 12 billion euros. Will it be possible to get in on one of Europe's largest IPOs this year? The article KNDS: The defense giant revives its IPO – How to prepare? appeared first on Cryptoast.

Arms giant KNDS, the product of a merger between France’s Nexter and Germany’s Krauss-Maffei Wegmann, is poised for a high-profile return to the financial spotlight. Following a strategic delay last July, prompted by market instability in the defense sector and disagreements over the company's valuation, the Franco-German group is now aiming for an IPO during the second half of September. The operation remains conditional, however, as stakeholders continue to seek common ground on a market valuation deemed realistic.

At the heart of the negotiations, the €12 billion valuation remains the primary sticking point. While shareholders initially hoped for far more ambitious figures—sometimes reaching as high as €20 billion—institutional investors seem to be prioritizing caution, refusing to align with levels they deem too speculative. This IPO, which would rank among the largest in Europe for 2026, highlights the ongoing tension between seller expectations and the current economic reality of the military sector.

From an industrial perspective, KNDS boasts undeniable strength. As a pillar of European rearmament, the company—which manufactures the Leopard 2 and Leclerc tanks, as well as Caesar artillery systems—is benefiting from the widespread increase in defense budgets. Its financial results reflect this momentum, with revenue reaching €4.4 billion in 2025 and a solid operating income of €661 million. With an order backlog exceeding €23 billion, the group enjoys exceptional visibility regarding its future business.

For retail investors, however, access to the capital will be indirect. The structure of the offering prioritizes institutional players, making direct participation in the initial public offering impossible. Nevertheless, once the stock is listed on Euronext Paris, it will be PEA-eligible, allowing individuals to position themselves on the secondary market. Investors looking to add the stock to their portfolios will therefore need to wait for the first days of trading, while keeping in mind that the inherent volatility of the defense sector could influence the share price from the very beginning.