KNDS, the Franco-German land-arms group behind the Leclerc and Leopard tanks and the Caesar artillery system, is preparing a dual stock-market listing in Paris and Frankfurt—an offering that could rank among Europe’s biggest IPOs of 2026.
Right now, the company’s ownership is unusually clean-cut for Europe’s defense industry: the French state, through Giat Industries, holds exactly 50% of the shares, and Germany’s Bode-Wegmann family—via Krauss-Maffei Wegmann (KMW)—holds the other 50%.
That symmetry is about to change. The Bode-Wegmann family plans to sell shares through the IPO, a move Le Monde has described as potentially one of the year’s most significant listings in Europe.
JP Morgan pegs KNDS at roughly €18–€20 billion
JP Morgan, which has been tapped to run the transaction, has set a valuation range of €18 billion to €20 billion, according to information cited by Zone Militaire. At today’s exchange rate, that’s about $19.4 billion to $21.6 billion.
The Bode-Wegmann family had initially sought a €25 billion valuation (about $27.0 billion), but that target was lowered amid a less favorable market backdrop. Zone Militaire notes that Rheinmetall, Europe’s leading armored-vehicle company, has lost 25% of its value since January 2026.
Overall, the deal could value KNDS at €15 billion to €20 billion (about $16.2 billion to $21.6 billion), putting it among the largest defense-sector IPOs in Europe.
France’s stake expected to fall below 50%
An IPO would dilute existing shareholders, and the French state’s stake—currently 50%—is expected to drop below that threshold once shares begin trading. Some scenarios discussed would bring France down to around 30%.
That level would mirror what the German government could hold if it buys into KNDS. Berlin has said it wants to become a shareholder, and the sources cited describe a possible German stake of about 30% under discussion.
Even at roughly 30%, France would still retain a blocking minority under Dutch law, which governs the holding company, according to the article. The report also says specific security agreements would protect sensitive technologies, including the Leopard tank and the Caesar gun system.
KNDS has said it is sticking to its IPO timetable without waiting for any potential German state investment to be finalized.
Management goal: quadruple output by 2028
The listing is about more than raising money. Jean‑Paul Alary, who was appointed CEO in April 2025, has been explicit about the mandate he was given: prepare KNDS for a stock-market debut and increase production to four times its current level by 2028, notably to meet orders from the German army.
Current ownership and possible post-IPO scenario
| Actionnaire | Part actuelle | Part post-IPO (scénario) |
|---|---|---|
| État français (via Giat Industries) | 50 % | ~30 % |
| Famille Bode-Wegmann (KMW) | 50 % | Cession partielle en Bourse |
| État allemand | 0 % | ~30 % (en discussion) |
Source : Zone Militaire / opex360.com
Born from the 2015 merger of France’s Nexter and Germany’s KMW—often held up as a model for European defense-industrial cooperation—KNDS now faces a different kind of test: whether that cross-border structure can hold up under the scrutiny of public markets.
The dual listing in Paris and Frankfurt, expected in the coming weeks, will be the first full-scale trial of that ambition.
