LONDON, Feb 5 Reuters German tank gearbox manufacturer Renk said on Monday it expected to make its debut on the Frankfurt bourse this week, four months after poor market conditions forced it to postpone its plans to go public.

Its owner, private equity group Triton Partners, is looking to sell up to 450 million euros 485 million of shares in a private placement to institutional investors at 15 euros apiece, valuing Renk at 1.5 billion euros, according to a term sheet seen by Reuters.

This includes 150 million euros of stock being sold to FrancoGerman consortium KMWNexter Defence Systems KNDS and U.S. asset manager Wellington as cornerstone investors.

The books, which are due to close on Tuesday, were covered on the full deal size as of Monday morning, one of the bookrunners on the deal said, with demand strong.

The defence contractor supplies gearboxes for Germany39;s Leopard tanks, produced by KMW and used in conflicts such as the Ukraine war.

Renk, which is due to start trading on the stock exchange on Wednesday, pulled its initial public offering IPO at the eleventh hour in October blaming tough markets.

Optimism around IPOs has grown since, with central banks signalling interest rates may have peaked and volatility down to levels that dealmakers see as conducive to transactions.

Defence stocks, including Germany39;s Hensoldt, have been on the rise after dipping in the autumn, providing a better backdrop for Renk39;s listing.

KNDS told Reuters it was investing…