Rocketing Towards Expansion: Avio Plans Major Capital Raise for Global Growth

Italian aerospace company Avio has approved a capital increase plan of up to €400 million ($435 million) to significantly expand its manufacturing capabilities. The move, announced on Thursday, aims to capitalize on what the company describes as "robust opportunities" within the global space and defense sectors.

The new funding will support Avio's ambitious 10-year business plan. The company is targeting an average annual revenue growth of more than 10% and a 15% increase in core profit. To achieve these goals, Avio intends to strengthen its production capacity and increase vertical integration in both Italy and the United States.

In the space sector, Avio plans to boost the launch frequency of its Vega-C rocket, continue developing its Vega E platform, and provide propellants for Ariane rockets. The company recently secured a €350 million contract with the European Space Agency for the next-generation Vega-E rocket.

For its defense business, Avio will invest in advanced propulsion technologies. A key part of this strategy is the construction of a new manufacturing facility in the United States, which is expected to be operational by the end of 2028. This move is part of the company's efforts to meet rising demand from the U.S. military.

The capital raise, which is fully backed by a pre-underwriting agreement with Jefferies and Morgan Stanley, is scheduled to be completed by the end of the year. It will be executed in one or more tranches.