Shares in German defence supplier Vincorion (V1NC.DE) experienced a surge on their Frankfurt Stock Exchange debut, rising as much as 17.2% on Friday. By 1147 GMT, the shares were trading up 11.5%. The initial public offering (IPO) garnered significant investor interest, being oversubscribed multiple times. The listing comprised shares sold by the company’s main investor, Star Capital, and did not involve a capital increase. Vincorion specialises in providing advanced technology solutions for the defence, security, and transportation sectors. The company offers a range of products including power systems, electronic components and vehicle systems.
Vincorion CEO Kajetan von Mentzingen clarified that the company does not currently require additional capital to fund its growth, stating that existing earnings are sufficient. The company’s expedited IPO process mirrored that of Czechoslovak Group (CSG.AS), which recently debuted in Amsterdam. According to Stefan Maassen, head of capital markets & corporates at Deutsche Börse, the IPO’s success was due to the sector, structure, and pricing, which facilitated a healthy aftermarket.
The Vincorion IPO is part of a broader trend of European defence IPOs, driven by heightened investor interest in companies benefiting from increased military spending. Maassen also noted strong interest in Vincorion from private investors, attributing it to both a general rise in retail participation and a specific interest in the defence sector. Von Mentzingen stated that he did not believe the war in Iran was boosting demand at Vincorion but said it underscored the strength of the company’s business model.
Cornerstone investors including Fidelity, Invesco, and T. Rowe Price, committed to purchasing approximately one-third of the shares in the transaction. ($1 = 0.8648 euros)
