Investments into the weapons sector have surged as the continent overhauls its long-neglected armies to face a hostile Russia and as worries grow about US security commitments.

Shares in Vincorion, which develops power supply systems and other technology for tanks and aircraft, were changing hands for 19.80 euros ($22.90) in early trading, above the offer price of 17 euros.

The IPO valued the company's shares at 850 million euros.

"We're the energy, the backbone of critical systems," said CEO Kajetan von Mentzingen, before the bell rang at the Frankfurt Stock Exchange to mark the start of the IPO.

The strong start came despite a bleak picture for the broader Frankfurt exchange which, like other bourses around the world, has fallen heavily in recent days due to the Middle East war.

Its revenue was 240 million euros last year, compared to just over half that amount three years earlier.

The company's order books are filled to the tune of around 1.1 billion euros.

It is the fifth IPO of a German defence company on the Frankfurt exchange in the space of two years.

Other notable companies to list include tank gearbox maker Renk and submarine- and warship-maker TKMS.

Germany's biggest defence group, and one of the largest in Europe, is Rheinmetall, whose share price has increased 17-fold since Russia's invasion of Ukraine in 2022.