AEVEX Corp rode a surge in defence spending and investor appetite for military tech to raise $320 million in its U.S. initial public offering on Thursday, pricing shares at $20 apiece, near the top of its indicated range.

The California-based drone maker sold 16 million shares between $18 and $21 each.

Goldman Sachs, BofA Securities and Jefferies acted as joint bookrunners. AEVEX is set to begin trading on the New York Stock Exchange under the ticker “AVEX” on Friday.

Defence Spending Surge Lifts Demand

The listing comes amid heightened interest in defence-linked companies, as conflicts in Ukraine and the Middle East push governments to ramp up military budgets. Investors are increasingly viewing such firms as strategic hedges against global instability, and the group is attracting higher valuations as smaller companies challenge established contractors.

AEVEX's prospectus highlights the growing centrality of unmanned systems in modern warfare, noting that roughly 4 million drones were produced in Ukraine alone in 2025 — underscoring the scale and urgency of adoption.

The company, backed by private equity firm Madison Dearborn Partners, provides airborne intelligence, surveillance and reconnaissance solutions to the U.S. government and allied forces. Its IPO was multiple times oversubscribed, people familiar with the matter told Bloomberg earlier.

IPO Momentum Builds

The offering follows a strong market debut from aerospace parts maker Arxis (NASDAQ:ARXS), whose shares surged 36% on Nasdaq on Thursday, reinforcing investor confidence in the sector.

Drone maker Airo Group Holdings Inc (NASDAQ:AIRO) rose 140% in its public debut last June, while space and defense firm Voyager Technologies Inc. gained 80% (NYSE:VOYG).

Meanwhile, shares of major U.S. drone and defense players such as AeroVironment (NASDAQ:AVAV), Kratos Defense & Security Solutions (NASDAQ:KTOS) and Red Cat Holdings (NASDAQ:RCAT) have surged over the past year, rising roughly 37% to 167% as demand for unmanned systems accelerates amid global conflicts and rising military spending.

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