Vincorion plans IPO on Frankfurt stock exchange

Vincorion plans IPO on Frankfurt stock exchange

German defense technology firm Vincorion (Ticker: VCO GR) is set to proceed with its initial public offering on the Frankfurt Stock Exchange, following plans announced earlier this month. The company, which specializes in critical defense and aviation components such as tank stabilization systems, military vehicle power units, and aviation equipment, aims to raise €300 million to €350 million ($354.6 million to $413.7 million) through an all-secondary offering. The IPO, backed by private equity firm Star Capital, will not involve the issuance of new shares.

Early investor feedback has been positive, citing the company's strong management team, historical performance, and a substantial order backlog. This demand has prompted Vincorion to consider an accelerated timeline of under two weeks for the offering, mirroring the approach taken by peer CSG during its recent IPO. The underwriting syndicate includes Berenberg, BNP Paribas, and JP Morgan as joint coordinators, alongside Commerzbank and UniCredit/Kepler Cheuvreux.

Despite heightened market volatility linked to Middle East conflicts, defense firms like Vincorion have seen favorable conditions. The company's role in supplying components for the Patriot missile defense system, deployed regionally to counter Iranian threats, has strengthened its IPO case. Meanwhile, Frankfurt-listed defense peers Renk Group AG and Hensoldt AG traded higher during the market turmoil, signaling potential demand for Vincorion's shares. The offering could value the company at over €1 billion, aligning with a broader trend of "old economy" sectors advancing IPO plans amid uncertainty.