Applied Aerospace & Defense, a government contractor backed by private equity, has completed a U.S. initial public offering that raised $650 million after the offering was priced at $20 per share.
The Huntsville, Alabama-based company sold 32.5 million shares in the offering. Prior to pricing, the shares were marketed with an indicated range of $18 to $21 each. The report of the raise could not be immediately verified, and the company did not immediately respond to a request for comment.
Underwriters on the deal include Morgan Stanley and Jefferies. Applied Aerospace & Defense is scheduled to begin trading on the New York Stock Exchange on Wednesday under the ticker symbol "AADX."
Applied Aerospace & Defense was created last year when middle-market buyout firm Greenbriar Equity Group combined Applied Aerospace, founded in 1954, with PCX Aerosystems, which traces its origins to 1900. The combined firm manufactures a broad set of aerospace and defense components, spanning fuselage and flight control surfaces to solid rocket motor cases and engine shafts, serving space and defense technology customers.
The company lists customers that include Anduril Industries, Boeing and GE Aerospace on its website. Those relationships reflect a customer base focused on large aerospace and defense original equipment manufacturers and emerging defense technology companies.
The U.S. IPO comes at a time when a number of defense-related technology companies have moved to list in New York. Recent listings in the sector include aerospace parts maker Arxis, drone maker AEVEX and radio signal analyzer Hawkeye 360. Companies in the defense technology space have been accelerating listing plans to capitalize on investor interest tied to heightened geopolitical developments involving the U.S., Israel and Iran, and to capture valuation premiums seen in the sector.
Applied Aerospace & Defense builds parts and assemblies used across both traditional aerospace platforms and newer defense technology applications. The companys product portfolio and client roster position it to supply a range of programs in space and defense markets.
With pricing set at $20 and 32.5 million shares sold, the offering size totals $650 million. The firm will trade under the NYSE symbol "AADX" when it lists on Wednesday.