Defense technology IPO continues to heat up! Military drone manufacturer Aevex (AVEX.US) saw its stock price nearly double in the first two days of going public.

With investors betting on global military spending to rise, military drone maker Aevex (AVEX.US) saw its stock price more than double in the first two trading days after its IPO, continuing the trend of new defense technology companies on the market. Aevex's stock price rose 49% to $40.25 on Monday, surpassing the IPO price of $20 per share last week. The stock closed up over 24% at $33.41 on Monday, with a total increase of over 67% since its debut, and after hours trading on Monday saw an additional nearly 15% increase. Aevex's strong performance in its IPO comes at a time when defense-related IPOs are receiving attention. With political tensions escalating and increasing demand for low-cost autonomous systems such as drones, defense technology companies are attracting more investors' attention. Conflicts in Ukraine, the Middle East, and other hotspots have accelerated the military's interest in unmanned technology. For investors, this trend highlights the growing market demand for companies benefiting from the modernization of defense budgets, particularly those providing software, drones, surveillance systems, and other next-generation equipment - companies that may grow faster than traditional weapons contractors. Market strategists say Aevex's rise is also benefiting from a broader risk appetite recovery sentiment, driving funds towards momentum trading in newly listed stocks. Other recently listed companies have also seen significant gains. Aerospace and defense component manufacturer Arxis (ARXS.US), supported by Arcline Investment Management, rose 38% on its first trading day last week, while drone software company Swarmer (SWMR.US) saw a substantial increase after its IPO in March. Analysts say that as governments shift spending towards systems seen as lower cost, more scalable, and flexible than traditional platforms, the industry remains attractive.