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 a wave of defense companies aim to capitalize on investor appetite for the sector amid 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 retail investors looking to hedge against global instability as the Middle East conflict drags on and defense budgets rise.
The contractor builds a wide range of products, including fuselages, flight control surfaces, solid rocket motor cases and engine shafts for space and defense technology companies.
(Reporting by Pragyan Kalita in Bengaluru; Editing by Jonathan Ananda)