The German-French defense company KNDS has postponed its planned stock market listing in Paris and Frankfurt. The firm wants to wait for better market conditions. The German government is sticking to its planned entry nonetheless.
KNDS announced on Wednesday evening that shareholders had decided to resume the plans only when the market environment for defense stocks in Europe improves. The company had scheduled the listing in Paris and Frankfurt before the mid-July summer break. The next window is now expected no earlier than September.
The sector faces pressure. Rival Rheinmetall lost significant value in recent days. Shares of the Czech defense firm CSG, listed in Amsterdam since the start of the year, also trade well below their issue price. Key investors see KNDS valuation at around twelve billion euros, the Financial Times reported.
The German government respects the decision but remains interested in acquiring a stake. A spokeswoman for the Federal Ministry for Economic Affairs stressed the aim to lead the company to success together with France. Green Party politician Sebastian Schäfer called the move a disaster for the government.
