Applied Aerospace & Defence Targets $3.59 Billion Valuation in US IPO
Synopsis
Applied Aerospace & Defense is targeting a valuation of up to $3.59 billion in its upcoming US IPO as investor demand for aerospace and defense companies continues rising. The Alabama-based contractor plans to raise as much as $682.5 million by selling shares priced between $18 and $21 each. The company manufactures key aerospace and military components including fuselages, engine shafts and rocket motor cases. Analysts say defense stocks are attracting strong investor interest amid ongoing geopolitical tensions and rising military spending globally.
Applied aerospace and defence plans to launch a $3.59 billion IPO.
Key Highlights
- Applied Aerospace & Defense Taps Up to $3.59B Valuation
- IPO gives firm potential to raise as much as $682.5 million
- Shares are expected to be priced from $18 and $21 each
- Investor demand for defense companies has peaked in light of geopolitical tensions
- IPO underwriters are Morgan Stanley, Jefferies
Applied Aerospace & Defense proceeds with US IPO
Applied Aerospace & Defense is entering the IPO stock-market in the US as investor appetite for aerospace and defense continues to grow. The government contractor based in Huntsville, Alabama, said it intends to raise as much as $682.5 million by offering 32.5 million shares in a price range of $18-$21 each, which would value the company at up to $3.59 billion.
Key components for aerospace and defense
Applied Aerospace & Defense (AAD), is supporting aerospace and defense products such as the fuselages, engine shafts, solid rocket motor cases and flight control surfaces for space & military technologies. Last year the company was created as a new business through the merger of Applied Aerospace and PCX Aerosystems by private equity firm Greenbriar Equity Group.
United Technologies has grown via acquisitions as well, such as its takeover of Consolidated Boring Inc in July and also moving into new markets with Vestigo Aerospace and Rainwater Holdings, shoring up manufacturing capacity, technical capabilities and geographic footprint in the aerospace-defense market.
Defence IPO Market Continues Gaining Momentum
This listing comes on the heels of a string of recent New York-based defense and aerospace IPOs from companies like drone maker AEVEX, aerospace parts manufacturer Arxis and radio signal analysis company Hawkeye 360. Analysts said defence teams were gaining as governments worldwide continued expanding military and defence financial plans.
Morgan Stanley and Jefferies are the underwriters on the Applied Aerospace & Defense offering, ahead of a Nasdaq listing for the company.
FAQs
- What does it manufacture?
The company is an operator of aerospace and defense components including rocket motor cases, fuselages, and engine shafts.
- What is driving investors to defense IPOs?
The sector has garnered investor interest due to rising geopolitical tensions and increasing defense budgets.
- Who is backing the company?
A private equity firm, Greenbriar Equity Group will back the IPO.
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