One of the ASX's biggest defence stock winners is back in the spotlight today.
Electro Optic Systems Holdings Ltd (ASX: EOS) shares have been placed in a trading halt after the company launched a capital raising of up to $175 million.
The halt follows another strong session on Friday, when EOS shares rose 4.13% to finish at $8.82 after the company announced a new MARSS contract.
Despite being down around 7% in 2026, the stock remains up 583% over the past year.
The latest update gives investors a lot to digest as EOS looks to build on its much larger order book.
Let's take a closer look at the release.
Image source: Getty Images
EOS taps investors for more cash
In a statement to the ASX, EOS advised it is raising up to $175 million through a placement and share purchase plan.
The larger part is a fully underwritten $150 million institutional placement, with about 18.8 million new shares being issued at $8 apiece.
The issue price represents a 9.3% discount to Friday's closing price of $8.82.
EOS said the placement will account for about 9.7% of its existing shares on issue.
Eligible shareholders will also be offered the chance to apply for up to $30,000 worth of new shares under the share purchase plan (SPP).
EOS said the placement and SPP shares will rank equally with existing shares.
The company expects the trading halt to lift on Tuesday, when it plans to announce the completion of the placement.
MARSS order book grows
The raising follows another strong update from MARSS, the counter-drone business EOS is buying.
MARSS has landed new orders worth 102 million euros, or about $165 million, from an existing Middle East customer.
Those latest orders lift the MARSS order book to about $217 million. If the acquisition completes, EOS expects its combined order book to rise to $726 million.
That's a big jump from $459 million at the end of 2025 and $136 million at the end of 2024.
The timing is also worth watching, with EOS expecting up to 80% of the combined order book to convert into revenue across 2026 and 2027.
What to watch next
All eyes will be on how EOS shares trade once the halt lifts tomorrow.
While the cap raising gives the company more cash, it also brings new shares at a discount after a huge one year run.
That means existing shareholders will face some dilution when EOS shares are unfrozen.
Attention will also be turning to whether the MARSS deal completes as expected, and how quickly the order book can turn into revenue.
