Huntsville’s Applied Aerospace & Defense is now trading on the New York Stock Exchange after raising approximately $650 million through its initial public offering.
The company priced 32.5 million shares at $20 each and began trading June 3 under the ticker symbol AADX. Reuters reported that shares opened at $20.75, above the offering price, when trading began.
The offering closed June 4 and also granted underwriters a 30-day option to purchase up to an additional 4.875 million shares.
Applied Aerospace & Defense manufactures hardware and components used in aerospace and defense systems. The company produces products including solid rocket motor cases, engine shafts and fuselage assemblies and has contracts with major industry customers such as Boeing and SpaceX. The news agency also reported the offering values the company at approximately $3.5 billion and that Applied was formed when private-equity firm Greenbriar Equity Group combined Applied Aerospace and PCX Aerosystems.
According to the company, its products support both next-generation technology programs and existing defense platforms. Applied operates advanced manufacturing facilities across the country and provides design, engineering and production services for aerospace and defense customers.
While the announcement centers on Wall Street, its significance reaches Huntsville as well. Applied Aerospace & Defense is one of a number of Huntsville-area companies involved in developing and manufacturing technologies used in space and defense missions.
Several major investment firms are participating in the offering. Morgan Stanley and Jefferies are serving as lead book-running managers, while BofA Securities, RBC Capital Markets and Guggenheim Securities are among the firms assisting with the transaction.
The company described itself as a provider of advanced design, engineering and vertically integrated manufacturing solutions for leading space and defense technology companies.
Company officials said proceeds from the offering are expected to support future growth initiatives, including facility expansions, equipment investments and potential acquisitions, according to Reuters.
