KNDS Postpones Multibillion-Euro IPO as European Defense Volatility Batters Sector
Updated
Updated · Breaking Defense · Jul 2
KNDS Postpones Multibillion-Euro IPO as European Defense Volatility Batters Sector
3 articles · Updated · Breaking Defense · Jul 2
Summary
KNDS said Wednesday it is indefinitely pausing its planned Frankfurt and Paris listing, even though it has completed substantially all preparation for the share sale.
Shareholders want to restart the IPO only when market conditions improve, with the company citing volatility across European defense stocks without detailing specific concerns.
Germany's June cancellation of the F126 frigate program helped roil the sector: Rheinmetall shares fell as much as 20%, wiping about €11 billion from its market value.
Analysts also pointed to U.S. budget pressure on the XM-30 program and possible Italian defense belt-tightening, which weighed on suppliers including Leonardo and Fincantieri.
The delay interrupts what had been expected to be a multibillion-euro launch after France and Germany agreed last month to become equal KNDS shareholders.