Defense giant KNDS plans IPO in Paris and Frankfurt

Defense giant KNDS has announced its intention to proceed with an IPO, saying on Wednesday that it plans to list its shares in Paris and Frankfurt.

The company is one of Europe's largest producers of military equipment, including armoured vehicles and ammunition used in Ukraine. The company is viewed as a key to the continent's rearmament push that has benefited defense companies like Rheinmetall, Saab, and BAE Systems.

The listing is expected to see the sale of up to 20% of the company's existing share capital by its current shareholders, GIAT Industries — a holding company owned by the French state — and the German private holding company Wegmann & Co.

Shares will be sold directly to institutional investors, with no retail offering.

KNDS, the maker of the Leopard 2 battle tank among other military hardware, also said Wednesday that the German government had reached an agreement with Wegmann to acquire 40% of its ordinary share capital.

Announcing the IPO on Wednesday, KNDS chief executive Jean-Paul Alary said that Europe was "entering a new era of defense and security" as militaries are "modernizing at speed and rebuilding critical land defense capabilities."

This is a developing story. Check back for updates.