KNDS Awaits Audit Clearance as Berlin Locks In 40% Stake Ahead of €20bn Dual Listing
24.05.2026 - 15:53:52 | boerse-global.de
The political architecture for one of Europe’s biggest defence IPOs is now in place. Germany has agreed to acquire a 40% stake in KNDS, the Franco-German maker of Leopard tanks and Caesar howitzers, mirroring the 50% held by France through GIAT Industries. The balanced shareholding structure removes a key uncertainty that had hung over the company’s plan to list simultaneously in Frankfurt and Paris in 2026.
Berlin’s entry at a 40% level, reportedly worth up to €8bn depending on the final valuation, gives both governments an equal say in strategic decisions while leaving the remainder of the equity free for public investors. The move ends months of speculation about potential delays and allows the IPO timetable to move forward without further political friction.
Audit report remains the next gatekeeper
Before the formal prospectus can be drafted, KNDS must deliver the audited financial statements for 2025. PwC has been mandated to complete the review, which the company pledged to publish in May. Besides the usual figures, the report will include the findings of an internal investigation into historical transactions — a disclosure designed to pre-empt any due diligence surprises.
CEO Jean-Paul Alary pushed back against rumours of a postponement in mid-May, insisting that preparations remain on schedule. Once the audit is signed off, the prospectus process can begin in earnest, clearing the way for the 2026 dual listing.
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Record orders underpin the valuation case
The operational backdrop provides solid support for the mooted €20bn market capitalisation. KNDS logged a 15% jump in order intake in fiscal 2024, to €11.2bn, pushing the total backlog to €23.5bn — enough to keep more than 11,000 employees busy for several years. Recent contract wins include Leopard 2A8 tanks for the Netherlands and artillery systems for the UK government.
Revenue stood at €3.8bn in the last reported period, leaving the order book-to-sales ratio at over six times. That kind of visibility is rare even in the defence sector and gives bankers a strong narrative to sell to institutional investors.
Renk stake sale generates €262m for balance sheet
Alongside the IPO preparations, KNDS has been tidying up its portfolio. On 22 May it placed 5.8 million shares in Renk Group AG via an accelerated bookbuilding, raising roughly €262m at €44.95 per share. The deal cut KNDS’s holding in the transmission specialist from 15.8% to around 10%.
The proceeds will be used to optimise the capital structure ahead of the float. The remaining stake is subject to a 180-day lock-up, signalling that KNDS does not intend to exit Renk completely in the near term. The company had previously indicated that it wanted to maintain a long-term investment of about 10%.
Advisory team and unsolicited interest
KNDS has appointed Lazard as its financial adviser for the IPO, a mandate that signals the project has moved from feasibility studies into execution mode. The listing will be a true dual primary — shares will trade on both the Paris and Frankfurt exchanges, giving access to the largest pools of European capital.
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Meanwhile, Belgian munitions maker CSG NV approached the German family shareholders in mid-May with an offer for their stake. Whether that approach matures into a deal remains unclear, but it underlines the intense demand for land-defence assets in the current geopolitical environment. KNDS itself is not a party to those talks.
Subject to market conditions in the second half of the year, the company expects its public market debut to proceed without further hurdles — provided the audit report lands on time.
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