Aerospace parts maker Arxis targets $11.2 billion valuation in US IPO

By Arasu Kannagi Basil and Pritam Biswas

April 8 (Reuters) – Arxis is targeting a valuation of up to $11.2 billion in its U.S. initial public offering, the aerospace components maker said on Wednesday, as defense tech companies take center stage in the listings market amid geopolitical turmoil.

The Bloomfield, Connecticut-based company is seeking up to $1.06 billion by offering 37.7 million shares priced between $25 and $28 apiece.

The roadshow launch comes as elevated volatility following the U.S.-Israeli war on Iran has prompted bankers to turn to defensible industrial names that can better withstand the effects of the conflict.

Drone maker AEVEX and precision components manufacturer Elmet have also filed for U.S. IPOs in recent weeks.

“Against the backdrop of ongoing conflicts in the Middle East and Ukraine, the timing arguably strengthens the case. It reinforces the depth and resilience of demand for mission‑critical aerospace and defense components,” said Troy Hooper, co-head of equity capital markets, Americas, at Mergermarket.

Arxis makes electronic and mechanical components such as seals, gaskets and metallized fabrics for aerospace and defense, medical technology and specialized industrial markets.

Under buyout firm Arcline’s ownership, Arxis has expanded through over 30 acquisitions since 2019, including the $1.8 billion purchase of rival Kaman in 2024.

Arxis has benefited from rising global defense spending as countries prioritize modernization programs and invest in advanced technologies to counter threats.

Recent listings show that investors are increasingly willing to reward scaled platforms with differentiated exposure, particularly those that can mirror the playbook of higher-multiple peers, Hooper said.

Funds and accounts managed by Capital International Investors, Capital Research Global Investors, Janus Henderson Investors and T. Rowe Price Investment Management have separately indicated interest in buying up to $400 million worth of shares from Arxis’ offering.

Goldman Sachs, Morgan Stanley and Jefferies are the joint bookrunning managers. Arxis will list on the Nasdaq under the symbol “ARXS”.

(Reporting by Arasu Kannagi Basil and Pritam Biswas in Bengaluru; Editing by Sahal Muhammed and Tasim Zahid)