KNDS IPO Plans Confirmed as CEO Dismisses Key Rival's Interest

KNDS CEO confirms IPO on track for June/July, rejects Rheinmetall's strategic interest, and reveals a €20bn valuation with a dual Paris-Frankfurt listing.

The Chief Executive of Franco-German defense group KNDS has provided unequivocal confirmation of the company's upcoming initial public offering. Jean-Paul Alary stated last Wednesday that the planned listing faces no obstacles and remains firmly on schedule, directly addressing market speculation. In the same briefing, he delivered a clear rejection of a potential strategic investment from a major industry competitor.

Financial Foundations and Market Debut

Bankers advising on the transaction anticipate a dual listing on the Paris and Frankfurt exchanges, potentially occurring in June or July. The company's total valuation is estimated to reach approximately €20 billion, with plans to float around 25% of its equity. The IPO will involve both the sale of existing shares and the issuance of new stock. The capital raised from new shares is earmarked for strategic investments and potential acquisition opportunities.

The group's recent financial performance provides a solid backdrop for its market debut. In 2024, KNDS reported robust order intake of €11.2 billion, while its order backlog stood at a substantial €23.5 billion. Revenue for the period increased to €3.8 billion. To support its expanding operations, the company has significantly grown its workforce, adding 5,000 new employees since 2023.

Strategic Rejection and Government Stakes

Alary specifically addressed the expressed interest from German defense contractor Rheinmetall, leaving no room for misinterpretation. He asserted that Rheinmetall would "not provide the strategic direction that KNDS requires," highlighting a fundamental divergence in corporate strategy. He characterized Rheinmetall's approach as one of diversification, contrasting it with KNDS's focused commitment to land defense systems.

This stance exists alongside the German federal government's own objective to secure a blocking minority stake of at least 25% in KNDS, indicating complex ownership dynamics surrounding the public offering.

Expansion and Advisory Expertise

In a related strategic move just prior to Alary's comments, KNDS France entered into a Memorandum of Understanding with Polish defense firm Grupa Niewiadów. The agreement focuses on the production of 155-millimeter artillery shells, aligning with an industry-wide trend of relocating manufacturing closer to end-users to strengthen supply chain resilience. The commencement of series production remains contingent upon finalizing a contract with the Polish Armaments Agency.

The company has fortified its governance in preparation for the listing. Since January 2026, the Board of Directors includes Christian Schulz, the former Chief Financial Officer of RENK Group AG, who brings direct experience from overseeing RENK's own IPO process. Leading investment bank Lazard is acting as the advisor for the public offering.