Airo Group (AIRO, Financial), an aerospace and defense technology company, made a remarkable debut on the New York Stock Exchange with its stock surging 140%. This marks the third instance this month of a new stock doubling on its first day, reflecting the market's strong interest in defense technology firms. Airo Group, which specializes in drones already deployed in NATO operations, plans to manufacture domestically and seek military certification.
The IPO raised $60 million, with the offering size increased to 6 million shares at $10 each, despite initial expectations of $14-$16. The offering was oversubscribed, completed with just a single day of roadshow. Airo aims to leverage its public status to secure $200 million from the Canadian government and additional bond market financing.
The company's drones, featuring AI capabilities for reconnaissance and target identification, have been tested in real-world conflicts like Ukraine and are challenging to intercept. Airo plans to produce military drones in the U.S. and aims for Department of Defense certification within six months.
The IPO timing was strategic, coinciding with a recent executive order to boost the U.S. drone industry, providing a policy advantage. Airo initially postponed its April IPO due to market volatility but resumed plans as market conditions improved and investor interest remained strong.
