Drone Maker Initially Priced Its Public Offering at $10 Per Share

AIRO Group Holdings, a self-described “technologically differentiated” aerospace and defense company, has officially entered the public markets with an explosive debut. The company priced its IPO at a modest $10 per share, far below its originally marketed range of $14 to $16, and sold 6 million shares to raise $60 million.

Just hours later, the stock was trading at $24, up 140%, after reaching a peak of $39.07. The offering gives AIRO a post-IPO market capitalization of about $270 million based on shares outstanding, though that figure ballooned to around $650 million by the close. For comparison, the company reported $87 million in 2024 revenue, putting its valuation at roughly 7.5 times trailing sales. That figure places it between slightly better-known industry names such as AeroVironment and Kratos Defense, which trade at 12x and 6x sales.

This wasn’t AIRO’s first attempt at a public debut. It had originally been planned to go public in April, but rising market volatility (and some healthy skepticism) delayed the effort. This time around, a brief drop in the VIX and some geopolitical tensions helped tilt sentiment.

“With Iran and Israel, we always hope for a peaceful result, but that also feeds into the demand because there is a lot more appetite for aerospace and defense investments,” stated AIRO executive chairman and co-founder Chirinjeev Kathuria.

AIRO’s drones are currently used by NATO countries and have reportedly operated in Ukraine, although the filing emphasized they are not (yet) armed. The company has promised US drone production in the near future, and hopes to get certified for DoD sales within six months.

Kathuria, who also happens to be AIRO’s largest shareholder, indicated interest in purchasing up to $5 million worth of shares at the IPO price. While the offering itself was relatively modest in size, Kathuria said the public listing opens the door to an estimated $200 million in additional funding through Canadian and debt-market sources.

FMI: https://theairogroup.com