KNDS Poised for Summer IPO as €20bn Valuation Backed by Malaysian CAESAR Order and US Howitzer Tender
Published on 06/23/2026 at 12:42 | Redaktion boerse-global.de
The Franco-German defence group KNDS is closing in on a long-awaited dual listing in Frankfurt and Paris, with a fresh export contract and a potential multibillion-dollar US Army award adding tailwinds. The tank and artillery manufacturer — known for the Leopard 2 and Leclerc — is targeting a float as early as 13 July, valuing the business at up to €20bn.
Malaysia has ordered 18 CAESAR 155mm self-propelled howitzers under a contract signed on 16 June at the Eurosatory defence fair. The deal, inked alongside local partner Advanced Defense System, makes Malaysia the 15th operator of the truck-mounted artillery system, which has racked up roughly 800 orders or deliveries worldwide. The CAESAR’s “shoot-and-scoot” mobility is prized in South-East Asia, where Malaysia joins Indonesia and Thailand in adopting NATO-standard 155mm artillery.
Far larger, however, is the opportunity across the Atlantic. The US Army plans to award a contract by July for up to 500 self-propelled howitzers, with production potentially starting in 2028. KNDS is bidding alongside Leonardo DRS, facing off against South Korea’s Hanwha, Rheinmetall and Elbit America. A win would vault the group into the world’s most important defence market, replacing the M777 towed howitzers in the 81st Stryker Brigade and later in infantry units.
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KNDS is also showcasing next-generation combat systems to bolster its credentials with investors. On the Eurosatory floor it unveiled TARGAS, an integrated counter-drone and missile defence system that combines detection and neutralisation in a single loop. A containerised drone launcher, built around a 20-foot ISO box and integrating Helsing HX-2 loitering munitions with Tytan TI-1 METIS interceptors, was presented on 15 June. The unit is fully self-contained with its own power, cooling and network link. Meanwhile, the MTO-T, KNDS’s first ground-based loitering munition, draws on lessons from Ukraine to protect soldiers during breach operations.
Financially, the group enters the IPO window on a strong footing. Revenue rose nearly 16% in 2025 to €4.4bn, while operating profit jumped from €500m to €661m. The order backlog hit €33.1bn — equivalent to 7.5 times annual sales, far above the typical one-to-two times for industrial firms. The pipeline is fuelled by European rearmament programmes covering Puma infantry fighting vehicles, Boxer and Dingo wheeled armoured vehicles, and multiple artillery systems.
The listing itself is underpinned by a governance structure that splits ownership evenly between Berlin and Paris. Both governments will hold 40% stakes: Germany is buying its portion from the Wegmann family in a deal valued at an estimated €6bn–€7bn, while France is reducing its current 50% holding. The remaining 20% will be offered to public investors. Despite the lower equity stakes, each state retains 50% of voting rights through a special governance framework, ensuring continued political control. The European Commission cleared the German entry on 18 June, seeing no competition concerns.
One final domestic hurdle remains. On 24 June, the Bundestag’s budget committee will vote on the funds needed for Germany’s 40% acquisition. A green light would clear the last political bottleneck for the dual listing. If approved, KNDS expects to start trading on the Frankfurt and Paris bourses as early as 13 July, before the summer recess. For the Wegmann family, the IPO marks an exit; for the two governments, a way to anchor strategic control while tapping private capital.
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