Franco‑German defence group KNDS launched the formal steps to float shares on Paris and Frankfurt exchanges. The move targets a 20% stake of existing capital, offered by the French state and a consortium of German family shareholders, and could raise several hundred million euros. If completed, the IPO would rank among Europe’s largest listings this year, testing appetite for arms manufacturers.

The offering will be executed through private placements to institutional investors, sidestepping a broad retail tranche. Berlin confirmed on Monday its intention to buy part of the German families’ holdings, trimming their collective 50% stake to roughly 40% to align with France’s reduced share, and will support debt reduction for the group. The proceeds are expected to fund a complex restructuring as Europe accelerates rearmament.

KNDS’s flagship products, the Leopard battle tank and the French Leclerc, underpin the consortium’s strategic relevance. By unlocking capital, the firm aims to modernise production lines and expand export pipelines amid NATO‑backed defence spending hikes. Investors will watch pricing closely as valuation benchmarks shift. The dual‑listing will therefore reshape Europe’s defence equity market and set a benchmark for future state‑linked IPOs.