A Connecticut-based aerospace components manufacturer announced Wednesday its plans to enter the stock market with a potential company valuation reaching $11.2 billion, joining a wave of defense technology firms going public during ongoing global conflicts.
Arxis, headquartered in Bloomfield, Connecticut and supported by private equity firm Arcline Investment Management, plans to raise as much as $1.06 billion through the sale of 37.7 million shares. Each share will be priced in the $25 to $28 range.
The timing reflects a broader trend where investment bankers are focusing on defense technology companies for stock market launches, believing these firms can better weather market uncertainty stemming from the ongoing U.S.-Israeli conflict with Iran.
Two other defense-related companies, drone manufacturer AEVEX and precision parts maker Elmet, have similarly announced plans for U.S. stock market debuts in recent weeks.
The company specializes in creating electronic and mechanical parts for the aerospace, defense, medical technology, and specialized industrial sectors. Arxis operates through two main business divisions focusing on electronic components and mechanical components respectively.
Company officials stated they plan to use the money raised from going public to reduce existing debt, with remaining funds allocated toward operational expenses and general business needs. Arcline, their private equity backer, focuses specifically on industrial sector investments.
Several major investment firms including Capital International Investors, Capital Research Global Investors, Janus Henderson Investors, and T. Rowe Price Investment Management have expressed preliminary interest in purchasing a combined $400 million worth of shares from the offering.
Goldman Sachs, Morgan Stanley, and Jefferies will serve as the primary underwriters for the stock offering. The company plans to trade on the Nasdaq exchange using the ticker symbol “ARXS.”
