Thyssenkrupp’s Naval Spinoff TKMS Soars in Debut on Defense Boom

Shares of submarine-builder TKMS surged in their Frankfurt trading debut on Monday after the marine defense company was spun off from Thyssenkrupp AG, with investors’ eagerness to buy into Europe’s defense stock rally giving an early boost to the new stock.

TKMS shares opened at €60 ($69.98), before rising as high as €107. The surge gave the shipbuilder a market value of as much as €6.8 billion, above estimates of between €2.7 billion to €4 billion, depending on the valuation multiple.

The warship builder’s roaring debut comes amid a broader surge in defense stocks this year, as Europe races ...