KKR-backed defense supplier Hensoldt said it plans to go public in Frankfurt in what could be the year’s biggest German listing, as the European IPO market shows signs of recovery.
The size of the deal wasn’t disclosed but Bloomberg reported in July that KKR was seeking a valuation of as much as €3 billion. New and existing shares worth between 20% and 30% are expected to be listed.
Hensoldt specializes in radar and optical sensors for military aircraft, working with German and other governments, as well as NATO. Formerly a unit of Airbus, KKR bought the company in 2016 for €1.1 billion. Given that government defense budgets are typically pre-approved or even ring-fenced, Hensoldt has been relatively insulated from the pandemic.
The company reported revenue rose 6% to €440.3 million in H1 compared with the same period last year, and said it expects revenue for the whole year to exceed €1.15 billion.
The German IPO market has struggled to attract listings so far this year with only three companies having gone public, according to PitchBook. Consumer health company PharmaSGP’s July IPO was the largest, valuing it at €378 million.
The market has begun showing signs of recovery, with a string of companies recently announcing their intentions to go public in Frankfurt. Private equity-backed academic publisher Springer Nature is looking to list as early as this month, Bloomberg reported, seeking a valuation of around €7 billion. Camper van maker Knaus Tabbert disclosed earlier this month its plans to raise €20 million by selling roughly 50% of its shares on the stock exchange. In July, Vodafone announced that it had chosen Frankfurt over London to list the IPO of its European towers business.
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