Aevex Inc., a company that makes unmanned aerial systems, is advising investors to anticipate its initial public offering will price toward the upper half of the marketed $18 to $21 per-share range. Company guidance points to a pricing outcome nearer the top of that interval as the deal attracts strong investor interest.
People familiar with the offering say the deal is multiple times oversubscribed, a level of demand that has been revealed through one-on-one meetings between the company's bankers and prospective buyers. Those people requested anonymity because the details remain private.
Sources involved in the process indicate the offering has attracted sizable participation from long-only investors, rather than only short-term or hedge fund buyers. That mix of demand is cited as a factor supporting a higher pricing result within the marketed range.
Market participants familiar with the timetable say the deal is on track to price later Thursday. Once completed, the shares are expected to begin trading on the New York Stock Exchange under the symbol AVEX.
A group of investment banks is managing the transaction. Working on the offering are Goldman Sachs Group Inc., Bank of America Corp., Jefferies Financial Group Inc., JPMorgan Chase & Co., Royal Bank of Canada and Baird. Those banks are conducting investor outreach and coordinating allocation discussions as the deal moves to pricing.
The pace of demand observed in the roadshow and investor meetings, together with heavy subscription levels, have shaped the guidance issued to investors about where in the marketed range the IPO is likely to settle. While the company has indicated an expectation for upper-half pricing, the final price will be set at the time of pricing based on investor orders and allocation decisions.
Contextual note: The information on subscription levels, investor composition and timing comes from people directly involved in the process who declined to be identified because the information is not public.