French-German defense giant KNDS said on Wednesday it planned to list its shares in Frankfurt and Paris, in an initial public offering (IPO) that sources predict would value the maker of Leopard 2 tanks and Caesar howitzers at around 15 billion euros ($17 billion).
The offering will consist of 20% of the company’s existing share capital, KNDS said.
Germany will pay more than the IPO price for its 40% stake in the company under a formula that includes a customary control premium and post-listing share performance, according to a document seen by Reuters late on Tuesday.
The arrangement is part of Berlin’s effort to preserve parity with the French state following the listing. Parliament’s budget committee is expected to approve the deal on Friday, according to sources familiar with the matter.
Following 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, the company said.
KNDS was created in 2015 through the merger of France’s Nexter and Germany’s Krauss-Maffei Wegmann (KMW). The latest date for the listing would be July 13, one day before France’s Bastille Day national holiday.
