Airo Group Holdings Inc. Launches Roadshow for Initial Public Offering
Drone manufacturer Airo Group Holdings Inc. (Nasdaq: AIRO) is initiating its first stock issuance roadshow to enter the US stock market. Airo announced on Thursday plans to issue 5 million shares, with an expected price range of $14 to $15 per share, to be listed on the Nasdaq under the ticker symbol AIRO.
The Albuquerque, New Mexico-based company aims to raise $75 million with the help of underwriting firms Cantor, BTIG, Mizuho, and Bancroft Capital. After going public, Airo will issue up to 25.64 million shares; if the IPO price reaches the upper limit, Airo’s market capitalization could be as high as $410 million.
Airo indicated in its IPO filing that potential negative impacts from tariffs will persist until 2025. However, excluding tariff concerns, Airo estimates that the increase in global military spending, as NATO countries strive to bolster support for Ukraine’s defense against Russia and the demand from regions like the Middle East, will benefit the company.
According to Airo’s filing, the war between Ukraine and Russia, conflicts in the Middle East, and heightened geopolitical tensions in the Pacific have intensified global concerns, leading many governments to prioritize defense and security. This has resulted in increased defense budgets and a willingness to adopt new technologies and solutions.
Research from Precedence Research estimates that the military drone market size will rise from approximately $16.9 billion in 2025 to $24.75 billion by 2030. Airo stated that its products will play a role in future arsenals. Additionally, the U.S. military is transforming into a smaller, more agile force, utilizing observation, communication, and precision targeting technologies, which will accelerate the use of small military drones worldwide.
Airo’s co-founder and director is Indian-American entrepreneur Chirinjeev Kathuria, who has previously assisted other companies in going public, including UpHealth Inc. (UPHL) and Ocean Biomedical Inc. Airo’s CEO, Joseph Burns, has worked at United Airlines as the General Manager of Technology and Flight Testing.
Airo reported a net loss of $38.7 million and revenue of $86.94 million for 2024, compared to a net loss of $32.5 million and revenue of $43.3 million for 2023. Approximately $75 million of the 2024 revenue is expected to come from the Sky-Watch drone division, $9 million from Aspen Avionics, and $4 million from the military training and defense business, Coastal Defense Inc.
About Airo Group Holdings Inc.
Airo Group Holdings Inc. is an autonomous aerospace platform targeting opportunities in the 21st-century defense and aerospace market. Airo operates through four divisions: drones, avionics, military defense training, and electric air transportation.
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