TKMS Soars in Stock Market Debut, Doubles Valuation to €5 Billion

TKMS, a builder of warships, soared to €81 per share in its stock market debut on Monday, giving it a market capitalization of more than €5 billion ($5.8 billion), essentially double what was conventionally expected earlier. The event marks a big win for Thyssenkrupp, which is making over its logistics with the defense boom globally resulting from the greater attention to geopolitical tensions.

Thyssenkrupp retains a 51% stake in TKMS while the remainder has been distributed to its investors. TKMS' parent company shares fell 20.7% in early trading in Frankfurt, reflecting the stake transfer but were subsequently trading up 10.2% recognizing the spin-off.

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TKMS is the largest builder of non-nuclear submarine and frigate types of vessels in the world, and is based in Kiel, Germany. Its Atlas Electronics group also explores modern underwater technologies including mine-sweeping systems. Analysts had originally forecast TKMS to be valued somewhere between €2.3 billion and €2.7 billion, which shows that defense stocks are in strong demand.

The increase in defense budgets, especially since the Russia-Ukraine conflict, has led to a spike in orders, pushing TKMS’s backlog to € 18.6 billion in June 2025, up from €6 billion. CEO Oliver Burkhard said the company requires greater adaptability in light of growing geopolitical risks.

The launch comes as Franco-German defense supplier KNDS is considering an IPO, which indicates strong investor demand for defense assets. Listing advisers for TKMS included Commerzbank, Citi, and Deutsche Bank, while Thyssenkrupp confirmed that it was in talks with Jindal Steel International in India regarding the sale of its steel division.