Lyntris is targeting a valuation of up to US$2.53 billion in its U.S. initial public offering, the Trive Capital-backed company said on Monday, making it the latest to test strong investor appetite for defence listings. The Falls Church, Virginia-based Lyntris and selling stockholders are seeking up to US$528 million by offering 24 million shares priced between US$19 and US$22 apiece. A flurry of defence companies has pressed ahead with their listing plans since April as the U.S.-Israeli war on Iran has boosted investor appetite. Arxis, AEVEX, Applied Aerospace & Defense, Doncasters, and HawkEye 360 have debuted in New York since April. Trive Capital combined portfolio companies Accelint and Vitesse in May to form Lyntris. The combined firm has bulked through 12 acquisitions since 2018. “M&A-driven companies can appeal to investors since it’s a fairly straightforward story: grow through acquisitions and improve margins by cutting back office expenses and deleveraging,” said Matt Kennedy, senior strategist at Renaissance Capital, a provider of IPO-focused research and ETFs. Lyntris makes battlefield sensors and software for the U.S. and its allies. It is involved in more than 200 active defence programs as of December 31, with no individual program accounting for over seven per cent of revenue, it said. Its backlog more than doubled to US$923.9 million as of June 30 from a year earlier. “The growing backlog is a key selling point. Also, most of their products have a strong position in customer supply chains,” Kennedy said. Lyntris reported a net loss of US$13 million on revenue of US$241 million in the six months ended June 30, compared with a net loss of US$9.7 million on revenue of US$179.1 million a year earlier. Evercore ISI, Citigroup and Guggenheim Securities are lead book-running managers. Lyntris will list on the NYSE under the symbol “LYNX.” --- Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Anil D’Silva and Sahal Muhammed
