KNDS IPO: Berlin and Paris Lock In Dual Control with a 10% Premium for German Entry

The Franco-German tank maker KNDS will make its market debut in mid-July with a valuation of up to €15bn, but the float is as much a political pact as a financial event. Germany has agreed to pay a premium of more than 10% over the IPO price to secure a 40% stake via the state-owned KfW bank, buying the shares from the private holding Wegmann & Co. France will adjust its existing holding through the GIAT state holding to match that exact level, leaving 20% of the equity to be placed with institutional investors only.

The dual listing in Paris and Frankfurt is scheduled for mid-July, with market sources pointing to 13 July as the likely first trading day. The company will have a valuation range of €12bn to €15bn according to CEO Jean-Paul Alary, though some analysts put the figure as high as €18bn. The official securities prospectus, to be approved by the Dutch regulator AFM, is expected within days and will trigger the placement phase.

Behind the numbers sits a strict governance framework designed to ensure absolute parity between the two governments. The board will expand to 12 members, with Berlin and Paris each sending three representatives. Major decisions require approval from both sides, and special veto rights protect national security interests on key technologies. To lock in the arrangement, both states are bound by a 10-year lock-up period during which they must each hold at least 30% of KNDS.

Financially, the IPO is backed by a record order book. KNDS started the year with more than €33bn in contracted work. Revenue for the last financial year came in at €4.4bn, with operating profit of €661m. The company expects a 30% sales jump in 2026, and management’s medium-term target is annual revenue of €12bn. Production across European factories is running at full tilt, with the Boxer wheeled armoured vehicle alone notching orders for more than 1,860 units by February 2025 through the ARTEC consortium, which KNDS Germany leads alongside Rheinmetall.

Should investors sell immediately? Or is it worth buying KNDS?

The pipeline got a further boost from Norway’s decision to equip its Leopard tanks with the Trophy active protection system, a product of the Eurotrophy joint venture in which KNDS subsidiary KMW holds a stake. These ongoing programmes are a key driver of the company’s valuation.

The timing of the float also coincides with the NATO summit opening on 7 July, where member states are expected to set new spending targets for heavy tanks and autonomous systems. That political backdrop provides a direct framework for investors sizing up KNDS. Other defence groups, including Israel’s IAI and Rafael Advanced Defense Systems, are also preparing stock market listings, with Israeli officials heading to the US in mid-July to negotiate placements of up to 30% of those companies by year-end.

For now, attention is on the precise mechanics of the KNDS deal. Germany’s premium purchase — more than 10% above the IPO price — reflects the strategic value of keeping a controlling hand in Europe’s biggest armoured vehicle maker. The free float, limited to 20% and reserved for institutional buyers, means retail investors will have to watch from the sidelines as the Franco-German defence champion begins its life as a public company.