Franco-German tankmaker KNDS has chosen banks for a dual listing in Frankfurt and Paris, according to people familiar with the matter. The move accelerates plans to tap surging investor demand for defense stocks amid heightened geopolitical tensions.

A public offering would value the maker of Leopard 2 tank components and artillery systems at billions of euros. The listing follows a surge in defense budgets across Europe, with companies like Rheinmetall seeing shares soar. IPO proceeds could fund expansion or debt reduction.

The deal’s success hinges on market conditions and the NATO spending backdrop. Investors will watch pricing and allocation for signals of defense sector valuation. A successful listing could spur more defense market entries as governments boost military procurement.