AIRO Group Holdings (AIRO) Stock: Drone Maker Soars 140% in Market Debut

TLDR

Table of Contents

AIRO Group Holdings shares surged 140% in their public trading debut after raising $60 million in an IPO priced at $10 per share
The drone maker initially jumped as much as 291% before paring gains, giving the company a market value of approximately $622 million
Company upsized its IPO to 6 million shares and priced below the marketed range of $14-16 per share due to strong demand
AIRO plans to begin US military drone production and seek Defense Department certification within six months
The IPO comes during escalating Middle East tensions and follows recent strong debuts from other defense tech companies

AIRO Group Holdings made quite the entrance to public markets on Friday. The drone manufacturer’s shares rocketed 140% higher during their first day of trading on the Nasdaq.

The Chicago-based company raised $60 million through its initial public offering. They sold 6 million shares at $10 each, well below their original target range of $14 to $16 per share.

AIRO Group Holdings, Inc. Common Stock (AIRO)

Despite the lower pricing, investors showed strong appetite for the stock. Shares peaked at nearly $31 during early trading before settling at $24 by market close.

The wild price swings triggered multiple volatility halts throughout the day. At one point, the stock had gained as much as 291% from its IPO price.

This debut performance gives AIRO a market capitalization of roughly $622 million based on outstanding shares. The company joins a recent string of successful IPO launches in the defense technology sector.

Good morning, things to watch next week
🔥 IPO technology leader? $AIRO
SkyWatch AI drone adopted by NATO/Ukraine
Revenue of $87 million in 2024, YoY +100%
The stock surged 128% on the first day of listing and closed at $24, with a large number of retail investors entering the… pic.twitter.com/hQKVrHv8wf
— Laura (@Laura925506) June 15, 2025

AIRO’s timing proved fortuitous with geopolitical tensions running high. The stock began trading just as Israel and Iran exchanged missile and drone attacks, highlighting the growing importance of unmanned aerial systems in modern conflicts.

Revenue Growth and Business Focus

The company generated $87 million in revenue during 2024, doubling their 2023 performance. Most of this income comes from their drone manufacturing operations, particularly their AI-enabled Sky Watch surveillance drones.

AIRO competes with established players like AeroVironment and Kratos Space & Security Solutions. Their drones already operate across European Union and NATO countries.

The company has tested and deployed systems in the Ukrainian conflict. According to executive chairman Chirinev Kathuria, their AI-enabled capabilities make the drones difficult to intercept.

AIRO currently focuses on reconnaissance and targeting applications for European NATO members. Kathuria noted they could add weapons capabilities if requested by NATO countries or the US.

Expansion Plans and Government Contracts

The company plans to begin US military drone production within the next six months. They’re working toward Defense Department certification to compete for lucrative government contracts.

Kathuria explained that going public provides credibility when bidding for NATO and Pentagon deals. The IPO also unlocks access to $200 million in Canadian government financing plus additional debt market opportunities.

President Trump’s recent executive orders supporting domestic drone production could benefit AIRO’s expansion plans. These orders aim to reduce US reliance on Chinese-manufactured commercial drones.

The company’s existing products have proven their worth in real-world conflicts. Their drones operate successfully in challenging environments across multiple theaters.

AIRO deliberately kept their IPO size modest to limit dilution for existing shareholders. Executive chairman Kathuria indicated interest in purchasing up to $5 million worth of shares at the offering price.

The company initially planned to go public in April but postponed due to market volatility. Recent declines in the VIX index and strong performance from other defense IPOs encouraged them to proceed.

Cantor Fitzgerald, BTIG, and Mizuho Securities handled the offering. Shares trade on the Nasdaq Global Market under the ticker symbol AIRO.

The successful debut caps a busy month for defense technology IPOs, with Circle Internet Group and Voyager Technologies also posting strong first-day gains.

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