The German-French defense conglomerate KNDS, which produces the Leopard 2 tank and results from the merger of Krauss-Maffei Wegmann (KMW) and Nexter, is planning an initial public offering (IPO) in Frankfurt and Paris in summer 2026. The company is currently evaluating banks, with Lazard already hired as an advisor, and aims for a valuation of up to 20 billion euros. The IPO is seen as a strategic move to facilitate expansion and acquisitions, especially amid increased European military spending driven by the Ukraine conflict. KNDS, owned partly by the French government and family shareholders, is considering a minority stake sale to the German government, which is in talks about acquiring at least 25% of the company. The company has experienced record orders worth 11.2 billion euros, with a backlog of 23.5 billion euros, and in 2024 reported revenues of 3.8 billion euros with above-average profits. The company emphasizes its role in European defense cooperation and aims to leverage the IPO to fund further capacity and technology investments. Despite the geopolitical tensions, KNDS has excluded plans for a strategic sale to larger defense firms like Rheinmetall or Airbus, focusing instead on maintaining its specialization in land systems. The move follows a broader trend in the arms industry, with rising stock values for defense companies like Rheinmetall, amid increased military procurement across Europe.