Aerospace and defense components manufacturer Arxis (ARXS.US) prices IPO at $28 per share, raising $1.13 billion, set to debut on NASDAQ tonight.

Arxis Inc., a manufacturer of electronic and mechanical components for aerospace and defense companies, officially priced its initial public offering (IPO) on April 15 (Wednesday), issuing 40.5 million shares of common stock at a price of $28 per share, successfully raising $1.13 billion. The price was at the top end of the company's previously set offering range of $25 to $28 per share, and due to strong investor demand, the company expanded the offering size in the final stage. At this offering price, Arxis has a market value of approximately $11.2 billion. The company's stock is set to begin trading on the Nasdaq Global Select Market on April 16 (Thursday) under the ticker symbol "ARXS". Goldman Sachs Group, Inc., Morgan Stanley, and Jefferies Financial Group Inc. served as the lead underwriters for the offering. Arxis's listing comes at a time when investors are increasingly interested in defense spending, as global defense budgets are growing. In the US, the Trump administration is expected to prioritize new contractors to strengthen and update missile ammunition reserves. According to its prospectus, the defense and aerospace sectors are Arxis's largest end markets, expected to account for approximately 47% of its revenue by 2025, with the commercial aerospace sector accounting for about 23% of revenue during the same period. Furthermore, the success of this IPO is largely attributed to Arxis's strong growth momentum and financial turnaround in recent years. As a portfolio company of private equity giant Arcline Investment Management, Arxis has achieved significant growth through a highly integrated acquisition strategy. Since 2019, the company has completed 32 acquisitions, with the most notable being the $1.8 billion privatization of rival Kaman Corp in 2024. Financial data shows that in the 2025 fiscal year, Arxis recorded revenue of $1.59 billion and successfully turned a loss into a profit, with a net loss of $55 million in 2024 turning into a net profit of $46 million. The company disclosed that it has over 5,000 customers, with approximately 90% of revenue coming from its patented products. The company stated that the funds raised will mainly be used to repay debt incurred from frequent acquisitions to further optimize its capital structure. From an industry perspective, Arxis's successful listing reflects the profound impact of the current global political situation on the defense industrial capital market. With ongoing conflicts in the Middle East and Europe, governments around the world are increasing defense budgets, leading to a surge in demand for high-tech defense components. Arxis's key mission electronics and mechanical components, such as seals, sensors, microelectronics packaging, and cable assemblies, are widely used in advanced weapon systems and aerospace platforms, with high industry barriers. Analysts point out that Arxis's pricing performance signifies a resurgence in demand for defense technology stocks in the secondary market, and also provides an important valuation benchmark for future IPOs of companies in the same sector such as AEVEX Aerospace. It is worth mentioning that this aerospace and defense component manufacturer will be one of the few industrial sector IPOs in the US. Aevex Corp., supported by Madison Dearborn Partners, plans to raise up to $336 million through its IPO, while nuclear company X-Energy Inc. aims for a maximum IPO raise of $814 million. Just earlier on Wednesday, Madison Air Solutions Corp. completed a $2.23 billion IPO, setting a record for the largest industrial company IPO in nearly thirty years.