KNDS postpones IPO as investors reject valuation

Article excerpt

KNDS, the German-French tank manufacturer created from the 2021 merger of Rheinmetall and Nexter, has postponed its initial public offering after investors balked at a valuation exceeding 12 billion euros. The delay scuttles a German government plan to acquire a 40 percent stake in the company through the stock market debut. The pullback reflects broader investor caution over defense contractor valuations even as geopolitical tensions remain elevated. The timing is notable: while KNDS shelves its flotation plans, a German drone startup announced it had secured $1 billion in fresh funding, suggesting investor appetite remains selective rather than broadly suppressed across the defense technology sector.