European Defence Firms Move Toward IPOs as Spending Rises
European defence companies are preparing a fresh wave of stock market listings as higher military budgets and strong investor demand lift the sector. ICEYE, Doncasters GroupDealroom has a profile for this one. Try Dealroom →, KNDSDealroom has a profile for this one. Try Dealroom → and Czechoslovak Group (CSG) are among those considering initial public offerings, following buoyant market debuts by ExosensDealroom has a profile for this one. Try Dealroom →, RenkDealroom has a profile for this one. Try Dealroom → and ArlenDealroom has a profile for this one. Try Dealroom →.
The shift comes as European governments commit to significantly increased defence spending, partly in response to pressure from the Trump administration for the region to assume more responsibility for its own security. In June, NATODealroom has a profile for this one. Try Dealroom → members pledged to raise defence expenditure to 5 per cent of GDP .
Since Russia’s full-scale invasion of Ukraine in 2022, the Stoxx Europe aerospace and defence index has more than tripled , with more than half of this year’s gain occurring in recent months. Valuations have risen to levels that now exceed major US technology benchmarks.
Recent IPO performance has reinforced the appeal. TKMSDealroom has a profile for this one. Try Dealroom → gained 35 per cent on its first day in Frankfurt, Renk’s shares have risen 235 per cent this year, and Exosens has more than doubled since its 2024 listing. Arlen also enjoyed a strong debut.
Investor attention is extending to } including unicorns Helsing, Quantum Systems and Tekever. Some venture backers expect a small number to reach public markets, though many are likely to be acquired by established aerospace and defence groups or private equity firms.
Source:
The FInancial Times
J.V.
