The initial public offering for defense supplier VINCORION is complete, with trading on the Frankfurt Stock Exchange scheduled to commence tomorrow. The company enters the public market with significant momentum, as its four-day subscription period concluded today at noon with the share issue being multiple times oversubscribed.
Priced firmly at €17.00 per share, VINCORION opted against setting a price range. This approach, which shortens the listing process, signals strong initial confidence. It mirrors the strategy recently employed by Czech defense group CSG for its Amsterdam IPO earlier this year.
Cornerstone Investors Provide a Solid Base
Ahead of the first day of trading, three major institutions have committed as cornerstone investors. Fidelity International, Invesco, and accounts advised by T. Rowe Price have together pledged approximately €105 million. This sum represents nearly one-third of the total offering volume, substantially reducing placement risk and likely encouraging participation from smaller funds.
For now, the British investment firm Star Capital will remain the principal shareholder. Through this IPO, it will reduce its stake from 88.1% to a maximum of 47.5%. No new capital will flow directly into VINCORION, as this transaction is structured as a pure secondary deal.
Robust Financials and a Substantial Order Backlog
The company’s fundamental metrics are compelling. In 2025, revenue increased by 18% to €240.3 million. Operational earnings surged 64% to €33.7 million, while net profit doubled, reaching €19.4 million. Between 2023 and 2025, sales grew at a compound annual rate of 22%, a trend partly accelerated by heightened demand following the war in Ukraine.
A notable feature of the business is its aftermarket segment, encompassing maintenance, spare parts, and service. This division contributes a stable 55% of total revenue, providing recurring income streams that are less dependent on the timing of major new contracts. Furthermore, an order backlog of around €1.1 billion ensures production capacity is secured for the next four years.
VINCORION’s components are integrated into systems such as Patriot and Iris-T, with key clients including Rheinmetall and KNDS. The company operates in an addressable total market estimated at roughly €5.6 billion, which is projected to grow at about 10% annually through 2030. This expansion is underpinned by rising NATO defense budgets.
The IPO is being coordinated by BNP Paribas, J.P. Morgan, and Berenberg. VINCORION thus joins a recent series of defense sector listings, which included the GABLER Group that debuted on March 9. Post-listing performance will largely hinge on whether these strong fundamentals meet broader investor expectations and if export licenses and supply chains can sustain the current growth pace.
