Malaysia's First Self-Propelled Howitzers and a Drone-Killer Container: KNDS Builds Momentum for €20bn IPO
Published on 06/19/2026 at 09:01 | Redaktion boerse-global.de
Malaysia has placed an order for 18 CAESAR howitzers from KNDS, marking the southeast Asian nation's first-ever acquisition of self-propelled artillery. The contract, signed on June 16 at the Eurosatory defence exhibition in Paris, includes a technology-transfer licence and local assembly in partnership with Malaysian firm Advanced Defense System (ADS Sdn Bhd). The deal makes Malaysia the 15th buyer of the French wheeled howitzer and the third country in the region to field the system, after Thailand and Indonesia.
The decision ends a protracted procurement saga. Kuala Lumpur abandoned plans for second-hand M-109 howitzers from the United States in 2019 amid government changes and budget constraints, and a 2024 attempt to acquire Slovakia's EVA M2 also fell through. Now, the CAESARs—fitted with a 155mm L/52 gun—will equip a new regiment. Globally, orders for the CAESAR have now topped 800 units.
Fresh orders are flowing from other quarters too. The British Army has committed to 72 wheeled howitzers for nearly ÂŁ1 billion, adding weight to KNDS's narrative as Europe's only pure-play land systems specialist. On the exhibition floor in Paris, the company also rolled out two new platforms: the CAPINT battle-tank demonstrator, which mates a German Leopard chassis with an unmanned French 120mm cannon to bridge the gap until the future MGCS system arrives, and the LORAS tracked howitzer on a Boxer base, capable of striking targets at up to 100 kilometres.
Should investors sell immediately? Or is it worth buying KNDS?
Perhaps the most eye-catching debut is a universal drone-launch container housed in a standard 20-foot ISO box. The system combines offensive and defensive roles in one self-contained unit: inside sit Helsing's HX-2 loitering munitions for ground strikes and Tytan's TI-1 METIS interceptor drones for countering hostile unmanned aircraft. The container runs on its own power supply, cooling and network link, with control handled by Helsing's Altra software using AI-driven thermal detection. The design allows the launch point and the operator to be separated, and drones can be dispersed across multiple locations to make the firing position harder to pinpoint.
The hardware blitz is timed carefully. KNDS is pressing ahead with a dual listing in Frankfurt and Paris, targeting a capital raise of around €5 billion—roughly a quarter of its equity—to fuel expansion. Investment banks have, however, trimmed their valuation expectations. The initial target of €25 billion has been cut to a range of €18 billion to €20 billion as the group prepares to open its books to investors.
A significant obstacle has been cleared. An internal investigation into a 2013 contract with Qatar covering howitzers and Leopard 2 tanks found no evidence of wrongdoing by employees. That allowed KNDS to complete its audited 2025 financial statements and publish the official IPO prospectus. The numbers provide a solid foundation: revenue last year reached €4.4 billion, while the order backlog stood at €33.1 billion at year-end. The group employs nearly 11,000 people.
With the Malaysian order, the UK contract and a raft of new systems on show, the bankers now have concrete ammunition for the roadshow. Whether the lower valuation ceiling of €20 billion can hold under scrutiny will be the first real test once the books are opened.
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