Applied Aerospace & Defense is targeting a valuation of up to $3.59bn in its planned US initial public offering, as investor appetite for defence-related assets continues to strengthen amid rising geopolitical tensions, according to a report by Reuters.
The Alabama-based company said it plans to raise up to $682.5m through the offering of 32.5 million shares priced between $18 and $21 each. The company intends to list on the New York Stock Exchange under the ticker “AADX”. Morgan Stanley and Jefferies are reportedly among the underwriters on the offering.
Applied Aerospace & Defense was formed last year by Greenbriar Equity Group through the combination of Applied Aerospace and PCX Aerosystems. Since then, the company has completed a number of acquisitions, including Consolidated Boring, Vestigo Aerospace and Rainwater Holdings, as it expands its manufacturing footprint and product capabilities.
The company manufactures components for aerospace, defence and space technology applications, including fuselages, flight control surfaces and engine shafts.
The IPO comes amid increased investor demand for defense and aerospace companies, driven by elevated global security concerns and rising government defense spending. Several defense-focused businesses, including drone maker AEVEX, aerospace supplier Arxis and radio signal analytics company Hawkeye 360, have recently listed in New York.
