European tank manufacturer KNDS has postponed its planned initial public offering and market listing in Paris and Frankfurt, citing uncertain defense market conditions.
KNDS said Tuesday it shareholders informed the company that they would resume the planned share sale once market conditions improve.
"KNDS and its shareholders will continue to monitor the capital markets conditions closely and stand ready to resume the IPO process as soon as market conditions allow," the company said, noting it had completed all required preparation phases for the proposed listing and engaged extensively with investors.
"These discussions confirmed that investors shared KNDS' view of its differentiated industry positioning and their belief in KNDS' long-term strategy," it added.
KNDS said late last month that its shareholders, French state-owned Giat Industries and private German holding company Wegmann & Co, would sell up to 20% of the company's existing share capital under the IPO, and that it would seek listings on Euronext Paris and the Frankfurt Stock Exchange.
The German government had also signed an agreement to acquire a 40% stake in the defense company from Wegmann, subject to the completion of the IPO.
The proposed IPO would have valued the company at about 15 billion euros, Reuters reported Thursday, citing an unnamed source.
Formed from the combination of France's Nexter and Germany's Krauss-Maffei Wegmann, KNDS manufactures armored wheeled and tracked vehicles for more than 40 armies worldwide.


