KNDS is selling 5.8 million shares in Renk Group at €44.95 each, raising €269 million in a deal priced 2.8% below Tuesday's closing price. The Franco-German defense firm, Renk's largest shareholder with a 16% stake, made the offering as investor demand quickly covered the deal.

KNDS first invested in Renk in 2024 and increased its stake last year after settling a legal dispute with Triton Partners. Renk produces gearboxes for KNDS's Leopard 2 tank currently used in Ukraine, with its shares trading 208% above their IPO price amid sustained European military spending.

The proceeds will help reinforce KNDS's balance sheet ahead of its planned dual IPO in Paris and Frankfurt this year. Despite selling part of its stake, KNDS intends to remain a long-term shareholder in Renk, with Deutsche Bank and Goldman Sachs arranging the offering.