April 9 (Reuters) - Drone maker AEVEX said on Thursday it was targeting a valuation of up to $2.35 billion in its U.S. initial public offering, the latest defense firm looking to capitalize on investor appetite.
The Solana Beach, California-based company, backed by private equity firm Madison Dearborn Partners, is seeking up to $336 million in its IPO in the United States.
A growing number of defense-linked companies have sought to tap the new listings markets in recent weeks as issuers look to seize
on the opportunity created by the ongoing U.S.-Israeli war on Iran.
Aerospace parts maker Arxis also kicked off its U.S. IPO roadshow on Wednesday.
AEVEX provides airborne intelligence, surveillance and reconnaissance offerings to the U.S. government and its allied forces. The firm's key focus areas include precision-strike systems and loitering munitions.
The defense contractor's portfolio includes unmanned systems that can deliver munitions, explosive payloads and guided strikes against targets.
The war in Ukraine has underscored the crucial role of unmanned systems, with warfare increasingly moving toward drones.
An IPO would also come as a surge in conflicts across the world drives up defense spending, with countries prioritizing modernization initiatives and investing in advanced systems to counter adversaries.
The U.S. government accounted for roughly 78% of AEVEX's revenue in 2025. The company had a funded backlog of $503 million as of December 31.
Goldman Sachs, BofA Securities, and Jefferies are the lead underwriters for AEVEX's offering. The company will list on the New York Stock Exchange under the symbol "AVEX".
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Maju Samuel)
