Under the wave of SpaceX's listing, the new aerospace and defense newcomer, Applied Aerospace & Defense (AADX.US), priced its IPO at $20, raising $650 million.

According to sources familiar with the matter, Applied Aerospace & Defense (AADX.US), engaged in the manufacturing of aerospace, defense equipment, and components, raised $650 million through its initial public offering (IPO). The company, headquartered in Huntsville, Alabama, sold 32.5 million shares of stock at a price of $20 per share. Prior to this, the company had priced the shares between $18 to $21 per share. Calculated at this price, the market value of Applied Aerospace is approximately $3.4 billion, based on the number of outstanding shares listed in its filings. Morgan Stanley and Jefferies Financial Group Inc. are assisting the company with the IPO. The company expects its stock to begin trading on the New York Stock Exchange on Wednesday under the ticker symbol AADX. The documents show that the company offers subsystems for aerospace and defense industries that provide functions such as power and propulsion, battlefield connectivity, and survival capabilities in extreme environments. Its systems include reusable landing systems for launch rockets, control surfaces for fixed-wing platforms, and solid rocket motor casings for missile platforms. Documents reveal that with the support of private equity firm Greenbriar Equity Group, Applied Aerospace incurred a net loss of $15.1 million in the first three months of this year, with revenues of $1.344 billion, compared to a net loss of $7.3 million and revenues of $1.11 billion in the same period last year. The company has a backlog of nearly $1.1 billion in contracts, including agreements directly and indirectly with the U.S. government and its agencies. Greenbriar acquired Applied Aerospace at the end of 2022, and three years later merged it with another Greenbriar portfolio company, PCX Aerospace Systems. PCX Aerospace Systems is a mature aerospace, aviation, and defense industry systems and hardware supplier. Since then, Applied Aerospace has conducted a series of acquisitions and plans to achieve growth through further transactions. After the IPO, the private equity firm expects to hold 81% of Applied Aerospace's shares. This issuance coincides with a sharp increase in IPO activity in the aerospace, aviation, and defense sectors in recent months, including the $478.4 million IPO of signal intelligence company Hawkeye 360 in early May and the IPO of drone manufacturer Aevex in April. The listing of Applied Aerospace & Defense has a strong sector resonance and catalytic relationship with Elon Musk's commercial space giant SpaceX. Some Wall Street analysts point out that several aerospace and defense companies, including Applied Aerospace & Defense, have recently gone public to secure scarce aerospace funding, as the market widely anticipates that SpaceX may initiate a "century IPO" later this year. Additionally, with SpaceX setting records for rocket launches (including its recent highly anticipated Starship launch), global investment sentiment in space technology has reached historic highs. This has led to increased valuations for companies like Applied Aerospace & Defense, which provide actual hardcore products in the military aerospace hardware sector. For investors, the IPO of Applied Aerospace & Defense signifies another opportunity to bet on the modernization of the U.S. defense industrial base and rapid expansion of space infrastructure. The company positions itself as a provider of mission-critical systems used in launch rockets, military aircraft, and missile platforms, areas expected to benefit from long procurement cycles and continued government funding support. The company also emphasizes its large backlog of contracts, long-term customer relationships, and "sole-source supplier" status, demonstrating revenue visibility.