Applied Aerospace & Defense eyes $3.59 billion valuation in US IPO

May 26 (Reuters) - Private ‌equity-backed government ​contractor ​Applied Aerospace & Defense is targeting a valuation of up to $3.59 billion in its U.S. ‌initial public offering, as defense firms tap into ⁠strong investor appetite for the sector driven by heightened geopolitical ‌tensions.

The Huntsville, Alabama-based company ‌said on Tuesday it is seeking to raise as much as $682.5 million by offering 32.5 million shares priced ​between $18 and $21 apiece.

Companies such as Applied Aerospace & Defense are finding a more receptive audience among ⁠investors looking to hedge against global instability as the Middle East conflict ​drags on and defense budgets rise.

Aerospace parts maker Arxis, drone maker AEVEX and radio ​signal analyzer Hawkeye 360 have gone ‌public in New York in recent weeks.

Applied Aerospace & Defense builds a wide range of ⁠products, including fuselages, flight control surfaces, solid rocket motor cases and engine shafts for space and defense technology ⁠companies.

The company was formed last year when middle-market-focused buyout firm Greenbriar ​Equity Group combined Applied Aerospace, founded in 1954, and PCX Aerosystems, founded in 1900.

Applied Aerospace & Defense subsequently acquired Consolidated Boring ‌Inc, Vestigo Aerospace and Rainwater Holdings to expand its capabilities, manufacturing capacity and ‌geographic footprint.

Morgan Stanley and Jefferies are among the ⁠underwriters for the offering.

Applied ‌Aerospace & Defense will ​list on the NYSE under the symbol “AADX.”

(Reporting by Pragyan Kalita in Bengaluru; Editing by Jonathan ‌Ananda)

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