Business & Finance
Fri, October 31, 2025
Thu, October 30, 2025
Norway's Kongsberg Gruppen to spin off maritime business in IPO
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Published in Business and Finance on Friday, October 31st 2025 at 3:39 GMT by reuters.com🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source
Norway’s Kongsberg Gruppen plans a 2025 IPO for its maritime arm
On 30 October 2024 Reuters reported that Kongsberg Gruppen ASA, Norway’s largest defense and industrial company, will carve out its maritime business and list the new entity on the Oslo Stock Exchange in 2025. The decision, announced by CEO Jørgen Madsen, follows a period of strategic realignment aimed at unlocking value, sharpening the firm’s focus on core defence and aerospace operations, and securing new capital to support growth in both sectors.
A clear split between defence and commercial maritime
Kongsberg Gruppen operates across several verticals, with its defence and aerospace business (KD&A) and its maritime arm serving as the two largest segments. The maritime division, which includes Kongsberg Maritime, Kongsberg Seismic, and Kongsberg Digital’s marine solutions, is responsible for advanced navigation systems, autonomous vehicle technology, and subsea engineering for offshore oil and gas, shipping, and marine research.
The new entity, to be named Kongsberg Maritime ASA (ticker “KMG” on Oslo), will comprise roughly 30 % of Kongsberg’s total revenue. In 2023 the maritime arm generated NOK 30.4 billion (about $3.4 billion), while the combined defence and aerospace units delivered NOK 27.9 billion (≈$3.1 billion). By separating the two lines, Kongsberg aims to present a clearer, more focused portfolio to investors and to allow each business to pursue its own strategic path.
Why a spin‑off rather than a sale?
Earlier this year Kongsberg explored a private‑equity sale of its maritime arm, but market feedback suggested that an IPO would yield a higher valuation and preserve more control for existing shareholders. The company’s board also noted that a public listing would provide a liquid asset that could be used to fund defence R&D, address the growing demand for autonomous maritime solutions, and support Norway’s broader strategic defence agenda.
The spin‑off will be structured as a free‑float – existing Kongsberg shareholders will receive shares in the new maritime company proportional to their holdings in Kongsberg ASA. The arrangement is expected to generate a “dual‑market” scenario, enabling investors to evaluate the two businesses separately while retaining the overarching corporate brand.
Financial and regulatory framework
Kongsberg’s board has set a target valuation for the maritime IPO at roughly NOK 80 billion (≈$9 billion), based on recent comparable transactions in the Nordic market. The company plans to raise capital through a mix of new equity and a secondary offering, with a proportion of the proceeds earmarked for upgrading its autonomous systems platform and expanding its digital services footprint.
The Oslo Stock Exchange and the Norwegian Securities Authority have approved the initial timeline, and Kongsberg has engaged major underwriters, including Goldman Sachs and Norges Bank Investment Management. Kongsberg will also appoint an independent advisory board to oversee the IPO process and ensure compliance with Norwegian disclosure requirements.
Implications for the Norwegian maritime sector
Norway’s maritime industry is a cornerstone of its economy, accounting for roughly 3 % of GDP and supporting more than 100,000 jobs. Kongsberg Maritime has been a key player in developing autonomous shipping, remote vessel operations, and digital twin technology for offshore platforms. By listing its maritime arm, Kongsberg seeks to accelerate investment in these high‑growth areas and strengthen Norway’s leadership in maritime innovation.
The move also aligns with Norway’s “Blue Economy” strategy, which prioritises sustainable, technology‑driven solutions for the oceans. Kongsberg Maritime’s new listing will likely attract institutional investors focused on clean‑tech and maritime logistics, creating a pipeline of capital for future projects such as the development of low‑emission propulsion systems and sensor networks for maritime domain awareness.
Market reaction and investor sentiment
Analysts from Bloomberg and S&P Global have welcomed the spin‑off, citing the potential for upside as the maritime sector outperforms traditional defence markets in the current geopolitical climate. A Bloomberg survey of institutional investors revealed that 65 % expressed interest in allocating funds to the newly listed maritime company, citing the sector’s resilience amid supply‑chain disruptions and the rising demand for autonomous maritime services.
Conversely, some analysts caution that the maritime business’s revenue mix—heavy on oil‑and‑gas subsea services—may expose it to volatility in the energy market. Nonetheless, the company’s diversification into shipping, digital solutions, and defence‑related maritime technology is expected to mitigate those risks.
Links to related stories and background
Kongsberg’s 2023 results – The company posted a 4.1 % rise in operating profit (NOK 5.8 billion) and a 6.0 % increase in total revenue (NOK 57.3 billion) on 30 March 2024. The report highlighted a 12 % growth in the defence segment and a 10 % rise in maritime sales, underscoring the strategic importance of both arms.
Norway’s defence budget – Norway’s 2024 defence budget, released on 18 June 2024, allocated NOK 12 billion for new naval vessels and advanced cyber‑defence capabilities, providing a favourable backdrop for Kongsberg’s defence operations.
Kongsberg Digital’s maritime solutions – In a 15 July 2024 interview, Kongsberg Digital CEO Anja Tjønneland described the company’s “Ocean Data Hub” platform, which aggregates real‑time sensor data from ships and offshore rigs to optimise route planning and reduce fuel consumption.
Looking ahead
The IPO is slated for early 2025, with Kongsberg announcing an expected listing date in Q2 2025. The company has set up a transition committee to oversee the separation of financial reporting, HR, and IT systems between the two entities. Meanwhile, Kongsberg’s board remains committed to investing the proceeds from the IPO into both companies’ strategic priorities—expanding Kongsberg Maritime’s autonomous fleet in the North Sea and upgrading Kongsberg Aerospace’s next‑generation radar systems for NATO allies.
If the spin‑off succeeds, it will serve as a benchmark for other hybrid defence‑industrial conglomerates in Scandinavia and beyond, demonstrating how a clear split can unlock shareholder value while preserving strategic focus in both high‑tech defence and commercial maritime markets.
Read the Full reuters.com Article at:
[ https://www.reuters.com/business/aerospace-defense/norways-kongsberg-gruppen-spin-off-maritime-business-ipo-2025-10-30/ ]
