Arxis Inc. has priced its initial public offering at $28 per share, the company said April 15. The offering consists of 40.5 million shares of Class A common stock and is expected to generate approximately $1.13 billion in gross proceeds.
Based in Bloomfield, Connecticut, and backed by Arcline Investment Management, Arxis increased the size of the IPO and granted the underwriters a 30-day option to purchase up to an additional 6.075 million shares at the public offering price, less underwriting discounts and commissions. That option can be exercised at the offering price, potentially raising the total number of shares sold if the underwriters choose to do so.
Shares are slated to begin trading on the Nasdaq Global Select Market under the ticker symbol "ARXS" on April 16, with the offering expected to close on April 17, subject to customary closing conditions. Those timing targets are contingent on the completion of normal settlement and closing requirements.
Goldman Sachs & Co. LLC, Morgan Stanley and Jefferies are acting as lead joint book-running managers for the transaction. Citigroup and RBC Capital Markets are serving as joint book-running managers. Additional book-running managers include Baird, Guggenheim Securities, Wells Fargo Securities, William Blair, Rothschild & Co and Wolfe | Nomura Alliance. Citizens Capital Markets is serving as a co-manager.
Arxis designs and manufactures electronic and mechanical components intended for customers in aerospace and defense, medical technology and specialized industrial markets. The U.S. Securities and Exchange Commission declared the company’s registration statement on Form S-1 effective on April 15, clearing the way for the offering to proceed.
Bottom line - The IPO brings a significant influx of capital to Arxis and positions the company for public-market trading while leaving a structured option for underwriters to increase the offering size within a 30-day window.