Tankmaker KNDS postpones Paris-Frankfurt IPO amid volatility in European defense stocks

According to CNBC, tankmaker KNDS has postponed its planned public listing until market conditions improve, with shareholders deciding the IPO process will resume when more favorable conditions return, citing volatility in the European defense sector. Sources familiar with the matter said the company had struggled to win investor support for a valuation above 12 billion euros ($13.7 billion), after earlier media reports suggested it could be as high as 25 billion euros; KNDS had confirmed last week it intended to dual list in Paris and Frankfurt without giving pricing or timing, and the deal had been widely expected to involve a 20% flotation this summer. Morningstar strategist Michael Field said the company could revisit an IPO later this year if sentiment improves, while noting investors may want to see a couple of quarters of strong results. The report also noted weakness across the sector, including Rheinmetall down 32% year-to-date after a nearly 19% drop earlier this week, and said Czech-based Czechoslovak Group rose 33% on its first trading day after its January IPO but has since fallen about 60% from then.