A drone developer for the US government has gone public / Photo: aevex.com
Preliminary trading in shares of defense unmanned systems developer Aevex Corp has begun on the Freedom customer trading system. The company is going public amid rising conflicts around the world, leading to increased spending on weapons modernization, Reuters notes. Later on April 17, the drone maker's securities will appear on the New York Stock Exchange under the ticker AVEX.
Details
Aevex has raised $320 million in an IPO. The company offered 16 million shares at $20 per paper - with a stated range of $18-21. Based on the results of the IPO, the value of the entire company can be estimated at $2.2 billion, Bloomberg calculated. Agency sources reported earlier that the IPO was oversubscribed multiple times.
Goldman Sachs, BofA, Jefferies and JPMorgan were the lead organizers of the listing.
What the company is notable for
A California-based company is developing and manufacturing several types of artificial intelligence-enabled drones. These drones can be used in missions such as surveillance, reconnaissance and pinpoint strikes.
Aevex's main revenue comes from contracts with the U.S. government - 78% of its total revenue for 2025, according to a Form S-1 filed with regulators. The producer's 2025 revenue jumped 10% to $432.9 million, with most of it coming from Ukraine, Bloomberg notes.
The company's net loss narrowed 78% year-on-year to $16.8 million.
Aevex expects to deliver more than 10,200 autonomous systems by the end of 2026. Its funded orders totaled $503 million as of Dec. 31. By 2030, demand for unmanned systems will grow to $11 billion in the U.S. and $26 billion globally, the company predicts.
What the analysts are saying
Defense budgets are shifting toward advanced technology, and Aevex is well positioned to benefit from growing investor attention to the sector, Bloomberg says. The Trump administration is expected to prioritize new contractors as it expands and modernizes its missile arsenal, the agency writes.
However, because Aevex's revenue is largely dependent on contracts with the U.S. government, it could be negatively impacted by possible budget constraints or difficulties in securing new contracts, warns Freedom Broker analyst Alem Bektemirov.
He also points to the high level of competition in the defense industry, where there is fierce competition for contracts and increasing consolidation is leading to the emergence of larger players with a larger market share, which is putting pressure on prices.
According to the analyst, the fair market value of Aevex is $3.08 bln, and the equity capital can be estimated at $3.15 bln. The target price of the company's shares is $27.9, Bektemirov said. This is almost 40% higher than the offering price.
Competition for contracts to supply military drones remains high, agrees IPO expert Donovan Jones. At the same time, the current military situation may additionally strengthen demand and interest in the company's products, forming a "hype cycle" around its IPO, which will potentially lead to high volatility of shares after the offering, the analyst adds.
The U.S. defense budget remains significant, and military operations are increasingly shifting toward the use of drones, Reuters quoted Renaissance Capital senior strategist Matt Kennedy as saying. Even if the conflict with Iran ends soon, its suddenness will persist in public perception, Kennedy said. The window for defense IPOs is now wide open amid the conflict in the Middle East and significant support for the sector from both government and private investors, Kennedy said.
The defense industry itself is seen as a long-term growth segment for generations, IPOX CEO Joseph Schuster told Reuters. The growing number of conflicts around the world is driving up defense spending as countries prioritize weapons modernization initiatives, Reuters noted.
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Freedom clients will be able to get access to shares of Aevex Corp. before the opening of the main exchange session. Trading will begin in the early pre-market format 2-3 hours before the U.S. exchanges open (from 15:30-16:30 Astana time). To participate, click on the ticker AVEX.
This article was AI-translated and verified by a human editor
