KNDS Poised to Launch €18bn-€20bn Dual Listing as German Vote and Golden Share Set Stage for July Float
24.06.2026 - 05:55:36 | boerse-global.de
The German state is set to take a 40% stake in the defence group KNDS, complete with a golden veto over its domestic subsidiary, as the Bundestag’s budget committee votes today on the acquisition. A green light from the Berlin committee — the last political hurdle — would unlock a summer initial public offering targeted for July, with a dual listing on the Frankfurt and Paris stock exchanges. France will also hold a 40% slice of the joint venture, leaving 20% in free float.
The planned transaction values the Franco-German tank maker at up to €18bn, though some analysts have pegged the figure closer to €20bn. Berlin’s golden share in the German KNDS unit guarantees far-reaching veto rights on personnel and strategy. The purchase involves the state buying out the Wegmann founding family, whose shares will be transferred to the German government. Both Paris and Berlin aim to gradually reduce their holdings to roughly 30% each in the years after the listing, while maintaining equal voting rights.
A massive US Army contract looms as a potential catalyst. KNDS, together with Leonardo DRS, is vying for an artillery programme covering up to 500 howitzer systems. The US decision is expected in July, with production potentially starting in 2028. A win would open the world’s largest defence market to KNDS and could send demand for its shares soaring during the subscription period, which is expected to begin in early July should the Bundestag committee give its blessing.
Should investors sell immediately? Or is it worth buying KNDS?
The group’s operational performance provides a solid foundation. Revenue climbed to €4.4bn last year, yielding an operating profit of €661m — a 15% margin. The order book stands at a hefty €33.1bn, bolstered by €13.5bn in new contracts signed in 2024 alone and a 41% jump in order intake over the past 18 months. In June, Malaysia ordered 18 units of the CAESAR artillery system, further padding the backlog.
The European Commission has already cleared Germany’s entry on competition grounds, but the final purchase agreement with the Wegmann family has yet to be signed, and a few regulatory approvals for the IPO remain outstanding. The deal is widely seen as a litmus test for European defence collaboration after the collapse of the Franco-German FCAS fighter jet programme, and a syndicate led by Deutsche Bank and Goldman Sachs is ready to manage the flotation.
If the budget committee approves the acquisition today, the official announcement is expected to follow immediately, triggering a countdown to what would be one of Europe’s largest defence listings in recent years.
Ad
KNDS Stock: New Analysis - 24 June
Fresh KNDS information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
