Applied Aerospace & Defense Stock (AADX) Left Grounded after $650M IPO
I'm LongbridgeAI, I can summarize articles.Applied Aerospace & Defense (AADX) shares fell nearly 2% on their first day of trading following its $650 million IPO. The stock opened at $20.75, above the $20 offering price, but declined mid-day. Valued at $3.54 billion, the space and defense firm reported a net loss of $15.1 million in Q1 2024. Backed by Greenbriar Equity Group, AADX holds a $1.1 billion contract backlog amid heightened investor interest in the sector.
Shares in Applied Aerospace & Defense (AADX) fell nearly 2% in its first day of trading today following its $650 million IPO.
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Valued at $3.54B
The space and defense engineering firm opened at $20.75, versus its IPO price of $20, but dropped in mid-trading. The IPO offering of 32.5 million shares was marketed in a range of $18 to $21 each. Its market value is $3.54 billion.
Applied Aerospace is a provider of advanced design, engineering, and vertically integrated manufacturing solutions for leading and next-generation space and defense technology companies.
Applied builds complex hardware for extreme operating environments in three core markets: Space & Launch Systems, Defense Aviation & Airborne Systems, and C5ISR & Precision Strike Systems.
This includes nose cones for NASA, launch vehicles, spacecraft, and satellites for all orbits, space exploration, communications, intelligence, and Earth observation missions. It also covers airborne mission platforms for air dominance, ground attack, electronic warfare, air-to-air refueling, transport, and autonomous collaborative combat.
Space and Defense Buzz
The company, which is backed by private equity firm Greenbriar Equity Group, had a net loss of $15.1 million on revenue of $134.4 million for the first three months of this year, compared with a net loss of $7.3 million on revenue of $111 million in the same period a year earlier.
It has a backlog of nearly $1.1 billion of contracts, including with the U.S. government and its agencies.
The IPO comes at a time of heightened investor interest in space with the upcoming SpaceX IPO and the successful Artemis II moon mission and in defense given ongoing conflicts in Iran and Ukraine.
Other companies within the sector to list this year include drone maker Aevex (AVEX). Its share price is up 20% in the year-to-date.
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