KNDS, maker of Leopard 2 tanks, plans dual listing in Frankfurt and Paris as France and Germany take equal 40% stakes
The Franco-German defence group behind the Leopard 2 and Caesar howitzer will sell 20% of its shares to institutional investors, with Berlin and Paris each retaining 40% after the listing.
The IPO plan
KNDS, the Amsterdam-based Franco-German defence group, confirmed on Wednesday that it will list shares in Frankfurt and Paris within weeks. The offering will place 20% of the company’s capital with institutional investors; no retail tranche is planned. Proceeds from the sale will go entirely to the existing shareholders, the French state and the Wegmann family, rather than to the company itself. CEO Jean-Paul Alary said the group was “in a hurry to go public” and had encountered “very strong interest from institutional investors,” making a retail offering unnecessary.
Europe is entering a new era of defence and security. Armed forces are modernising at speed and rebuilding critical land defence capabilities. The planned IPO is a natural next step for KNDS.
Ownership and governance
After the listing, France and Germany will each hold 40% of KNDS. France will trim its current 50% stake, while Germany will buy 40% from the Wegmann family, paying a control premium above the IPO price. The two governments have agreed that neither may reduce its holding below 30% without the other’s consent for the next decade. As long as both remain above that threshold, each can appoint three directors to the board. Germany will also receive a golden share in KNDS’s German unit, giving it extra influence over personnel and strategy at the national level.
This agreement reflects the shared determination of France and Germany to strengthen Europe's industrial and defence capabilities, support their armed forces, and strengthen European sovereignty over the long term.
Valuation and market context
The transaction values KNDS at between €15 billion and €18 billion, according to sources familiar with the matter, making it one of the largest European defence IPOs in years. Earlier defence listings this year include Czech group CSG (€25 billion valuation in January) and German warship builder TKMS (€5.15 billion in October 2025). Defence stocks have been volatile, however; Rheinmetall fell 12.3% on Wednesday after reports that Germany would scrap a large warship project and buy smaller frigates from TKMS instead.
- CSG (Jan 2026)
- 25 € billion
- TKMS (Oct 2025)
- 5.15 € billion
- KNDS (Jul 2026 est.)
- 15 € billion
Strained Franco-German defence projects
The IPO comes against a backdrop of friction in joint armaments programmes. This month France and Germany abandoned the FCAS next-generation fighter jet after months of industrial disputes. The parallel MGCS main battle tank project, launched in 2017, is running roughly a decade behind schedule, and a German government spokesperson said on Monday that it would now focus on platform-independent technologies, casting doubt on whether a common tank would ever be built. KNDS has already unveiled an interim tank, the CAPINT, to bridge the gap until France’s Leclerc fleet is retired in 2038.
It would be very bad news for Europe if the project fell apart.
The project will focus on platform-independent technologies; it is not clear whether a joint tank will still be built.
Next steps
Germany’s budget committee is expected to approve the stake purchase on Friday, clearing the last political hurdle. The EU Commission has already signed off on the state-aid aspects. KNDS aims to complete the listing before mid-July.
- France and Germany agree on equal 40% stakes.
- KNDS confirms IPO plans.
- German budget committee to vote on stake purchase.
- Expected dual listing in Frankfurt and Paris.
