In a brief statement released late on Wednesday, the Franco-German business said that in light of current market volatility for the European defence sector, it had opted to delay its planned IPO until the return of “more favourable” market conditions.
It continued: “KNDS and its shareholders remain fully aligned on their priorities: delivering for its customers, expanding its European presence and accelerating the development of innovative complete mission solutions that strength Europe’s defence capabilities.
“[We] will continue to monitor the capital markets conditions closely and stand ready to resume the IPO process as soon as market conditions allow.”
Amsterdam-based KNDS, which makes the Leopard and Leclerc tanks, employs 11,000 people and has annual revenues of around €4.4bn. The German Wegmann family owns half of it and the French government the rest. Both were expected to maintain significant holdings following the IPO.
It had been slated to list in Paris and Frankfurt later this month. But according to the Financial Times, it had struggled to get potential shareholders to back a €12bn-plus valuation.
European leaders are ramping up military spending in response to Russia’s invasion of Ukraine and rising geopolitical tensions. That had sent defence stocks soaring, but investors now look to be cooling on the sector.
KNDS was formed in 2015 when Germany’s Krauss-Maffei Wegmann and the French state-owned Nexter Systems merged.