Amid anticipation for Elon Musk 's SpaceX IPO, the American aerospace and defense parts manufacturer Arxis debuted on Nasdaq on Thursday, April 16th. And the 38.4% increase in its shares demonstrates investor appetite for the sector.
The Connecticut-based company sold 40.5 million shares in an expanded initial public offering, after pricing the shares at $28 each, raising $1.13 billion. At the close of trading, Arxis shares were trading at $38.75 – the stock was up another 1.95% in after-hours trading as of 5:05 p.m. local time.
The IPO valued Arxis at over US$11 billion, based on the outstanding shares listed in its filings. Experts believe the success of the offering signals that the IPO market remains open to select sectors, despite market volatility, and that companies with significant profits can still go public.
The start of stock trading for the company led by Kevin Perhamus comes at a time when suppliers linked to the aerospace sector are increasingly turning to stock markets to finance expansion and meet the growing demand from commercial aviation and defense customers.
At the same time, geopolitical tensions, such as the war between the United States and Iran , have reshaped the demand for equipment in the sector, as countries increase military spending, leading investors to opt for companies considered better positioned to withstand the impact of these conflicts.
“The wars in the Middle East and Ukraine have created favorable structural conditions for the aerospace and defense sector, with increased defense spending and greater visibility in acquisitions,” Troy Hooper, co-head of capital markets at Mergermarket, told Reuters .
Furthermore, the rapid adoption of drones and autonomous technologies by the defense market is transforming the model of current warfare and creating a class of suppliers that is now experiencing rapid growth.
Arxis manufactures electronic and mechanical components, including seals and gaskets, for the aerospace and defense, medical technology, and specialty industries.
Their products include connectors, cable assemblies, components, sensors, and precision mechanical parts such as bearings and seals.
“Arxis will not be an isolated case. The IPO market for defense and aerospace companies is expanding. Private capital continues to flow into defense startups, increasing the likelihood of them going public later,” says Hooper.
Under the management of the private equity firm Arcline, Arxis has expanded through more than 30 acquisitions since 2019, including the purchase of competitor Kaman for US$1.8 billion in 2024.
The company has benefited from increased global defense spending, precisely during this period when countries are prioritizing modernization programs and investing in advanced technologies to combat threats of potential attacks.
In addition to Arxis, drone manufacturer Aevex and precision components company Elmet have also recently filed for IPOs in the United States. This movement shows that investors are increasingly willing to bet on companies in the sector that can generate higher multiples.
Funds and accounts managed by Capital International Investors, Capital Research Global Investors, Janus Henderson Investors, and T. Rowe Price Investment Management expressed interest in acquiring up to US$400 million worth of shares in the Arxis offering.
Goldman Sachs, Morgan Stanley, and Jefferies were the underwriters for Arxis' initial public offering. The company began trading on Nasdaq under the ticker symbol ARXS.
Waiting for Musk
While finalizing the details of its initial public offering, SpaceX has been registering a significant increase in the number of global users and downloads of the Starlink app in the first months of 2026.
Experts believe that the satellite internet service unit will be the main driver of the valuation of Elon Musk's company, currently estimated at around US$1.75 trillion. This division is projected to generate US$11.4 billion in revenue in 2025.
Brazil has been leading the company's growth rate, with a fivefold increase in the number of monthly active users compared to the same period last year. The country already represents 13% of the global user base, a significant increase compared to the percentage of less than 5% recorded a year ago.
Argentina saw a 159% increase in user volume. Combined, Brazilians and Argentinians account for more than 20% of SpaceX's active internet customer base. The United States follows closely behind.
In the view of analysts, continued growth in the number of subscribers will be crucial, with stock market investors eyeing future expansion opportunities. Among these are SpaceX's plans to develop orbital data centers as the next phase of its business growth.
