Aerospace parts maker Arxis targets $11.2 billion valuation in US IPO

April 8 (Reuters) - Arxis is targeting a valuation of up to $11.2 billion in its U.S. initial public offering, the aerospace components maker said on Wednesday, as defense tech companies take center stage in the listings market amid geopolitical turmoil.

The Bloomfield, Connecticut-based company, backed by private equity firm Arcline Investment Management, is seeking up to $1.06 billion by offering 37.7 million shares priced between $25 and $28 apiece.

The move comes as higher market volatility following the U.S.-Israeli war on Iran prompts bankers to turn to defense tech-linked listings that can better withstand the effects of the conflict.

Drone maker AEVEX and precision components manufacturer Elmet have also filed for U.S. IPOs in recent weeks.

Arxis designs and makes electronic and mechanical components for aerospace and defense, medical technology and specialized industrial markets. The company operates in two reportable segments - electronic components and mechanical components.

The company intends to pay down debt with the proceeds from the IPO and use the remainder for working capital and other corporate purposes. It is backed by private equity firm Arcline, which specializes in industrial ​investments.

Funds and accounts managed by Capital International Investors, Capital Research Global Investors, Janus Henderson Investors and T. Rowe Price Investment Management have separately indicated interest in buying up to a total of $400 million worth of shares from Arxis' offering.

Goldman Sachs, Morgan Stanley and Jefferies are the joint bookrunning managers. Arxis will list on the Nasdaq under the symbol “ARXS.”