TKMS, a German shipbuilder, will debut on the Frankfurt stock exchange Monday. This is part of a larger plan by Thyssenkrupp's parent company to streamline its structure in order to take advantage of the growing global demand for defence assets.

The shares of the company will begin trading on the Frankfurt stock exchange around 0700 GMT in a spinoff from Thyssenkrupp. Thyssenkrupp will retain a 51% share in TKMS and the remainder will be distributed to investors.

TKMS has a history of 187 years and is the largest manufacturer in the world of non-nuclear subs, frigates, underwater technology, including mine-sweeping system, through its Atlas Electronics division.

Thyssenkrupp, the parent company, is spinning off TKMS to capitalize on the soaring demand in defence equipment due to Russia's continued aggression in Ukraine as well as U.S. pressure to Europe to take matters into their own hands.

This coincides with the deliberations of Franco-German KNDS, a defence supplier in the near future, on an initial public offer. It reflects a growing investor appetite for pure defence plays.

TKMS employs over 9,100 people worldwide. Last month, the company held its first Capital Markets Day, releasing targets for margins that investors felt were not ambitious when compared to rivals like Britain's BAE and Germany's NVL.

In the early 1800s the company began as a manufacturer of steam engines and rail cars. Later iterations produced Germany's first sub, the Brandtaucher. This was done to compete better with Denmark's Navy.

(source: Reuters)