French-German tank maker KNDS defers IPO

FRANKFURT

French-German tank maker KNDS said it was delaying a planned a stock market flotation in Paris and Frankfurt due to unfavorable market conditions.

France and Germany had recently struck a deal outlining the joint governance of the maker of Leopard and Leclerc tanks and other land systems, with both countries to hold equal stakes.

The planned IPO, announced less than a week ago, was supposed to be one of the most significant recent stock market listings in European defense, with trading planned in Paris and Frankfurt and a valuation between 15 and 18 billion euros ($20 billion), according to Bloomberg.

"In light of current market volatility for the European Defense sector, KNDS... announces that its shareholders have informed the Company of their intention to resume the Initial Public Offering process upon the return of more favorable market conditions," a company statement said.

"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 added.

Created in 2015 through the merger of the French group Nexter, then owned by the French state, and Germany's KMW, owned by the Bode-Wegmann family, KNDS is one of the key players in Europe's land defense industry, facing competition from the American group General Dynamics/GDLS.

The company has completed most of the steps required for a stock market listing.