April 16 (Reuters) - Drone maker AEVEX said on Thursday that it had raised $320 million ​in its U.S. initial public offering after ‌pricing shares at $20 each.

The Solana Beach, California-based company sold 16 million shares within its ​indicated price range of $18 to $21 apiece.

Defence-linked companies are scrambling to raise funds in equity markets, capitalising on investor appetite sharpened by the Middle East conflict and rising defence spending.

Companies such as AEVEX are now finding a more receptive audience among institutional investors looking for hedges against global instability.

The war in Ukraine has underscored the crucial role of unmanned systems, with warfare increasingly moving toward drones. Roughly 4 million drones were produced in Ukraine alone in 2025, according to AEVEX's prospectus.

Shares of aerospace parts maker Arxis rose 36% in their Nasdaq debut on Thursday. 

AEVEX provides airborne intelligence, surveillance and reconnaissance offerings to the U.S. government and ​its allied forces. The defense contractor's portfolio includes unmanned systems that can deliver munitions, explosive payloads ‌and ⁠guided strikes against targets.

Goldman Sachs, BofA Securities and Jefferies are the joint lead bookrunning managers. AEVEX will list ​on the New York Stock Exchange on Friday under the ticker symbol "AVEX".