by Emma-Victoria Farr

Frankfurt (Reuters) – The Franco -German supplier of Military Defense Systems KNDS plans an IPO (IPO) at the end of the year, two sources told Reuters, while Europe’s desire to increase His defense triggers a rally in the sector.

The company had preliminary interviews with advisers on a possible IPO at the end of 2025 or in 2026, potentially in Frankfurt, indicated the sources, specifying that no bank has yet been mandated.

KNDS is the holding company formed since 2015 by the French Nexter and the German Krauss Maffei Wegmann (KMW). She notably produces combat tanks, armored vehicles and artillery systems.

The French State Participation Agency (APE) has refused to comment. KNDS and his German family shareholder Wegmann-Grupe did not immediately respond to requests for comments.

This possible stock market rating comes as the defense sector is experiencing a rebound after US President Donald Trump said Europe should significantly increase its military resources.

The companies in the sector are negotiated at 25.8 times the expected profits, against 18 times three years ago, according to data from LSEG Datastream on February 20.

The complexity of the shareholding of the company could force it to emit only a small part of its shares, suggested one of the sources, specifying that KNDS could also decide not to break into the stock market .

It is currently not clear if shareholders will decide to sell their shares in the event of IPO, or what evaluation the company could request.

KNDS, who will welcome his new managing director Jean-Paul Alary in April, generated a turnover of 3.3 billion euros in 2023.

(Written by Emma-Victoria Farr, with Mathieu Rosemain, Bertrand de Meyer and Etienne Breban, edited by Kate Entringer and Augustin Turpin)

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