KNDS Eyes IPO and German Government Partnership Amid European Defence Surge

Franco-German defence supplier KNDS is considering an initial public offering next year, CEO Jean-Paul Alary announced on Monday, while hinting that the German government might acquire a stake in the company. Speaking in Amsterdam, Alary stated that the board had urged him to prepare for an IPO, although a definitive decision remains pending.

Alary confirmed ongoing discussions with the German government about acquiring a blocking minority stake. Formed in 2015 with the merger of Germany's Krauss-Maffei Wegmann and French state-owned Nexter, KNDS's previous private owners and the French government remain joint shareholders, with Reuters previously reporting IPO considerations earlier this year.

Amid a surge in military spending following Russia's invasion of Ukraine, European defence firms, including KNDS, are eyeing expansion. Alary sees the potential for 'bold' acquisitions, potentially in Italy, and highlights the possibility of a new capital structure alongside plans to expand manufacturing capabilities in France and Germany.