On June 13, Aerospace & Defense Technology Company Airo Group's stock price soared 140% on the first day of listing, soaring nearly threefold in intraday trading, with a market capitalization of about $1 billion, and triggered multiple circuit breakers, and finally closed at $24 per share.

There is a resurgence of investment in the defense technology sector.

Open more funding channels

Although Airo's funding is small, its chairman, Kathuria, revealed that the real purpose is not to raise this money, but to establish the identity of a public company, thus paving the way for greater government and bond market financing in the future.

Specifically: $200 million from the Canadian government: By going public, Airo hopes to get the money from the Canadian government. More bond market financing: After going public, they also want more funding from the bond market.

"By going public, we will not only be able to get $200 million from the Canadian government, but we will also be able to open up other sources of financing in the bond market," Kathuria stressed. ”

Becoming a publicly traded company has another important benefit for Airo – it will appear more credible when bidding for NATO and U.S. Department of Defense contracts. "As a publicly traded company, we have more credibility when bidding for NATO's contract with the U.S. Department of Defense," Kathuria said. ”

Airo's main source of revenue is drone-related businesses, which have been deployed in NATO and EU countries and have also been battle-tested in the Ukraine conflict. They are equipped with artificial intelligence capabilities that can perform tasks such as reconnaissance, target identification, and strike guidance, and because of their AI capabilities, they are very difficult to shoot down.

The company plans to produce military drones in the United States and strive to obtain Defense Department certification within six months in order to enter the Pentagon's procurement system. This is not only a recognition of the company's technology and production capacity, but also a key step in opening up new markets.

Technology IPOs are picking up

Airo was originally intended to ring the bell in April this year, but the market was too volatile at the time – and here is a very key indicator: the VIX index (also known as Wall Street's "fear index").

At that time, the VIX index soared and the market sentiment became particularly volatile, and Airo decisively decided: take a break and wait for the limelight to pass. The good news is that the VIX index has recently fallen back to a low level near 20, indicating that the market tension has eased a lot.

Add to that the recent strong IPO performance of some popular companies: Circle Internet Group soared 168% on its first day of listing, Voyager Technologies' highest gains of more than 100% at one point have rekindled investor enthusiasm and given Airo a shot in the arm.

And it's not just its own competition, but even its peers, such as AeroVironment's stock price has been strong, and the entire industry is heating up.

It is worth mentioning that Airo had already met with potential investors back in April, so this restart IPO almost did not need to go through the full roadshow process.

By Wednesday evening, it was heavily oversubscribed, and the IPO was successfully completed on Thursday. Even on the night of the launch, Israel launched an attack on Iran, and the market mood was tense for a while, but this did not stop the issuance process. It only took one day to complete the listing, which is enough to see how strong the demand for Airo is from investors!

Timing is king

The timing of Airo's launch was also very clever. Just a few days ago, Trump signed an executive order to accelerate the development of the domestic drone industry in the United States. This is a direct policy benefit for Airo. "Modern warfare has been revolutionized by drones, and while we hope that tensions between Iran and Israel can be resolved peacefully, this uncertainty will instead increase market interest in the space and defense sector," Kathuria said. ”

Judging from the pace of Airo's IPO, this company is not only technically strong, but also very sophisticated in grasping the market window. Choosing to make a move at a time when the panic is ebbing, the market is picking up, and the stock prices of peers are strong, which is simply a textbook-level IPO operation.

With its advanced drone technology and clear strategic planning, this company has shown great growth potential. Especially in the context of the increasingly complex global security environment, such technologies and services are particularly important.

For investors, this combination of "strong demand + industry prosperity + favorable policies" is often the object worth paying attention to.