AEVEX fetches $320M in IPO proceeds
AEVEX's executive team ringing Friday's opening bell at the New York Stock Exchange. Photo by Michael M. Santiago / Getty Images
By
Ross Wilkers
AEVEX is the latest government contractor to tap into the public markets amid renewed investor interest in the defense industry.
AEVEX Corp. collected $320 million in its initial public offering that launched Friday after the drone manufacturer offered its shares at $20 each to start out.
The company sold 16 million shares within the previously-signaled price range of $18-to-$21 each, which means the stock hit the public markets at slightly above that range’s midpoint of $19.50.
Based on those figures, AEVEX has achieved a valuation of around $2.2 billion by making its stock available in the public markets. AEVEX is listed on the New York Stock Exchange under the ticker symbol "AVEX".
Shares in AEVEX were up 21% to $24.28 at 2:30 p.m. Eastern time and were as high as $25 during Friday's trading day.
Madison Dearborn Partners, the private equity firm that acquired AEVEX in 2020, remains the controlling shareholder through its ownership of more than three-fourths of the combined voting power of its outstanding stock.
By undertaking this IPO, AEVEX and its main backer are looking to tap into rising investor interest in defense companies. Autonomy and space have especially captured the attention of investors amid expectations of spending increases in those areas.
Solana Beach, California-headquartered AEVEX also provides aircraft modification and engineering support in addition to its core business as an autonomous vehicle builder. The company was founded in 2017 by Brian Radunenz, who became executive chairman in the fall after he handed the CEO title over to Roger Wells.
AEVEX posted $432.9 million in revenue for 2025 on a net loss of $16.8 million, while U.S. government work represented about 78% of that sales mix. Funded backlog totaled around $503 million as of Dec. 31.
Goldman Sachs & Co. LLC, BofA Securities and Jefferies are acting as joint lead bookrunning managers for the proposed offering. J.P. Morgan, RBC Capital Markets and Baird are acting as bookrunning managers.
William Blair, Raymond James and Needham & Company are acting as bookrunners. Academy Securities, Capital One Securities and PNC Capital Markets LLC will serve as co-managers.
Below are Wells, Raduenz and other AEVEX executive team members ringing the opening bell on Friday at the New York Stock Exchange.