The maker of Leopard 2 tanks and Caesar howitzers will float 20% of existing share capital, while France and Germany are set to retain equal 40% holdings after the listing.
KNDS plans to list its shares in Frankfurt and Paris in an initial public offering that sources said would value the Franco-German defence group at around 15 billion euros ($17 billion). The company said the sale will consist of 20% of its existing share capital. Germany is set to pay more than the IPO price for its 40% stake under a formula that includes a customary control premium and post-listing share performance, according to a document seen by Reuters. The arrangement is part of Berlin’s effort to preserve parity with the French state after the listing, with parliament’s budget committee expected to approve the deal on Friday, sources familiar with the matter said. After the IPO, French state-owned GIAT and German state development bank KfW will each hold 40% of KNDS’s ordinary share capital and remain long-term shareholders. KNDS was created in 2015 through the merger of France’s Nexter and Germany’s Krauss-Maffei Wegmann (KMW). The latest possible date for the listing is July 13, one day before France’s Bastille Day national holiday.