KNDS Tightens IPO Price Band as Swiss Howitzer Order Bolsters Record Backlog

Franco-German defence group KNDS targets June/July dual listing in Frankfurt and Paris with reduced valuation, backed by Swiss artillery order and resolved audit probe.

The Franco-German defence group KNDS is moving toward its long-awaited dual listing in Frankfurt and Paris with a freshly narrowed valuation range of €18bn to €20bn, down sharply from the €25bn initially targeted by its owners. The revised pricing comes as the company secures a major Swiss artillery contract and resolves an audit impasse that had threatened to delay the flotation.

Switzerland’s procurement agency armasuisse signed off on June 8, 2026 on an order for 32 DONAR 10×10 wheeled howitzers mounted on the Piranha IV chassis, with deliveries scheduled to begin in 2031. The system, built around KNDS’s Artillery Gun Module (AGM), is the only artillerie platform capable of firing on the move — a fully autonomous setup handling command, navigation and fire control without external input. KNDS acts as prime contractor, with GDELS-Mowag supplying the carrier vehicle, and the deal also includes munition containers, training equipment and logistics support.

The Swiss win extends the AGM family to five customer nations, joining the RCH 155 variants already contracted by Germany, the UK, Qatar and Ukraine. Britain’s order for 72 RCH 155 systems, valued at nearly £1bn and coordinated through the OCCAR procurement agency, was among the latest catalysts for the company.

KNDS reported revenue of €4.4bn for 2025, a gain of just under 16%, while EBIT climbed to €661m, lifting the margin from 13.2% to 15%. The order backlog swelled to €33.1bn at year-end, and new orders for the year — including more than 300 Leopard 2A8 tanks for the Czech Republic, the Netherlands and Croatia, plus additional Caesar howitzers — totalled a record €13.5bn. Employment stands at roughly 11,000 staff.

Yet the road to the IPO has not been smooth. A key hurdle was cleared when PwC agreed to certify the 2025 annual accounts after initially withholding sign-off pending the outcome of a probe by law firm Freshfields into a 2013 Qatari contract worth around €1.89bn for 24 howitzers and 62 Leopard 2 tanks. KNDS says the investigation is well advanced and has so far found no evidence of criminal conduct by current or former employees.

The listing, targeted for June or July 2026 with September as a fallback, will see just 20% of shares placed in free float. Bank of America, Deutsche Bank, Goldman Sachs and Société Générale are joint bookrunners. JPMorgan is advising state-owned KfW, which will take a 40% stake — mirroring the existing holding of the French government. The German state’s move to secure influence via KfW, alongside a planned special dividend of between €1bn and €2bn to existing shareholders before the float, underscores the tightly controlled ownership structure that has tempered investor enthusiasm.

A Czech competitor has meanwhile emerged as a potential anchor investor, betting on a full merger down the line. With production lines already stretched by multi-year orders, KNDS is using the IPO to tap public markets for the capital needed to fund further expansion.