By P.R. Venkat
European tank manufacturer KNDS has postponed its plans for an initial public offering citing current market volatility.
"KNDS and its shareholders will continue to monitor the capital markets conditions closely and stand ready to resume the IPO process as soon as market conditions allow," it said Wednesday.
KNDS said that it had substantially completed all required preparation phases for its proposed listing and engaged extensively with investors.
"These discussions confirmed that investors shared KNDS' view of its differentiated industry positioning and their belief in KNDS' long-term strategy," the statement said.
The tank manufacturer was planning to list its shares in Paris and Frankfurt.
KNDS, formed from the combination of Germany's Krauss-Maffei Wegmann and France's Nexter, had planned for existing investors to sell up to 20% of the company's shares to institutional investors via a private placing.
France's state-owned GIAT and Germany's Wegmann were also expected to sell shares as part of the process.
The German government would acquire a 40% stake in the company from Wegmann prior to the listing, KNDS said last week.
In December, KNDS said an IPO would let it tap capital markets and secure continued investment in industrial capacity and technology that would support the company's long-term growth.
Write to P.R. Venkat at venkat.pr@wsj.com