Applied Aerospace targets $3.6b valuation in $682.5m IPO

Greenbriar Equity Group-backed Applied Aerospace & Defense Inc. is targeting a valuation of as much as $3.6 billion in its US initial public offering, seeking to raise up to $682.5 million as a wave of defense contractors capitalize on investor appetite for the sector.

The Huntsville, Alabama-based company plans to offer 32.5 million shares at $18 to $21 apiece, according to a filing with the US Securities and Exchange Commission. At the midpoint of that range, the offering would raise roughly $634 million.

"Defense and aerospace companies are finding a more receptive audience among retail and institutional investors looking to hedge against global instability," the company said in its prospectus, citing the prolonged Middle East conflict and rising defense budgets across NATO member states. Applied builds a wide range of mission-critical components including fuselages, flight control surfaces, solid rocket motor cases and engine shafts for space and defense technology companies.

The IPO comes as a cluster of defense-related firms rush to public markets ahead of a potential listing from SpaceX later this year, which could be one of the largest US offerings on record. Applied's roadshow launches Tuesday, with shares expected to begin trading on the Nasdaq under a ticker symbol not yet disclosed. The company did not specify a use of proceeds beyond general corporate purposes and potential acquisitions.

The filing lists Jefferies, Goldman Sachs and Morgan Stanley as lead underwriters for the offering. Applied's debut follows a string of defense IPOs this year as governments globally boost military spending in response to heightened geopolitical risks. The company's revenue has grown alongside US defense appropriations, which rose to $895 billion for fiscal 2025, though Applied has not yet disclosed its own financial results in the filing.

This article is for informational purposes only and does not constitute investment advice.