A government defense contractor supported by private equity investors has successfully completed a $650 million initial public stock offering by setting share prices at $20 each, according to a Bloomberg News report from Tuesday that cited an unnamed source with knowledge of the transaction.
Reuters was unable to independently confirm the Bloomberg report. Applied Aerospace & Defense did not provide an immediate response when Reuters sought comment.
The Alabama-based company, headquartered in Huntsville, distributed 32.5 million shares according to the report. The firm had previously indicated it would market shares within a price bracket of $18 to $21 per share.
Multiple defense technology companies are entering the U.S. public stock market, seeking to take advantage of increased investor attention driven by the U.S.-Israeli conflict with Iran.
Companies are moving forward with public listing schedules to take advantage of the defense sector’s growing importance in geopolitical matters and higher market valuations.
Several companies including aerospace parts manufacturer Arxis, drone producer AEVEX, and radio signal analysis company Hawkeye 360 have recently completed public offerings in New York.
Investment firm Greenbriar Equity Group, which focuses on middle-market acquisitions, merged Applied Aerospace with PCX Aerosystems last year to create Applied Aerospace & Defense. PCX Aerosystems was established in 1900.
Applied Aerospace, which began operations in 1954, manufactures various products such as aircraft body components, flight control surfaces, solid rocket motor casings, and engine shafts for space and defense industry clients.
The company’s client base features Anduril Industries, Boeing, and GE Aerospace, as listed on the company’s website.
Investment banks Morgan Stanley and Jefferies are serving as underwriters for the stock offering. Applied Aerospace & Defense plans to begin trading on the New York Stock Exchange Wednesday using the ticker symbol “AADX.”
