Aerospace and defense technologies company Airo Group (AIRO) has revealed the terms of its initial public offering (IPO). The company plans to sell 5 million shares of AIRO stock, which will be priced between $14 and $16 per share. This could see it raise between $70 million and $80 million from its IPO.
Airo Group could get even more money from its IPO if underwriters exercise their purchase options. These rights include sales of up to 750,000 shares. This could net the company an additional $10.5 million to $12 million if all of those shares are sold. Cantor, BTIG, and Mizuho are the joint lead book-running managers for the IPO, with Bancroft Capital serving as its book-running manager.
The AIRO IPO Is Below Estimates
Investors will note that Airo Group’s IPO is below expectations, which predicted the company would seek $100 million from its IPO. The company also already has plans for some of the funds it will receive from the IPO. It plans to use $23.4 million of net proceeds to pay off its debt.
At the midpoint of $15 per share, the company would have a market capitalization of $373.31 million. This would be just enough to push it above the minimum to be considered a small-cap IPO.
Will AIRO Stock Be Worth Buying?
Airo Group is going public during a turbulent time for the U.S. economy. The escalating trade war saw a brief reprieve when President Donald Trump announced a 90-day pause on tariffs. However, this doesn’t include tariffs on China, which have surged to 145%.
With America’s economic future uncertain, traders have sought stocks less influenced by tariffs. Airo Group could fit that bill, as it’s based in the U.S. and focuses on the aerospace and defense sector, meaning it’s unlikely to import much. Following this logic, traders might consider stakes in other companies in this sector. You can compare some of the top players in the space below.
