Drone company Innovaero Technologies Limited (ASX: INN) will list on the ASX next week after an initial public offer (IPO) which raised $40 million.
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Australian defence force a key customer
The company's prospectus said the company is focused on both crewed and uncrewed aircraft development and support systems.
Chair Vincenzo Di Pietro said in the prospectus:
As at the date of this Prospectus, the Company's primary product is the OWL-B, a one-way loitering (OWL) munition system that forms part of the Company's OWL family of systems, which is being developed in collaboration with the Commonwealth (Department of Defence) (DoD) via the Mission Talon-Strike Contract (refer to Section 7.1 for further details). In addition to the Company's current and historic arrangements with the DoD for uncrewed aerial systems, the Company also derives revenue from its engineering, certification, composite manufacturing and MRO business.
Mr Di Pietro said a priority for the company would be advancing the development of the OWL family of systems, and in particular, "advancing the OWL-B system through remaining qualification and certification with the DoD with the objective of securing production contracts''.
The company would also be looking to expand into international markets in the UK, Japan, and the US, he said.
The company's prospectus said it was looking to differentiate itself as an Australia-owned drone manufacturer.
The company said:
In Australia, the relevant market opportunity is significant compared with the United States and parts of Europe, particularly in relation to sovereign designed and manufactured armed drones and related interceptor capability. Historically, much of the defence market has been dominated by large primes and platform-centric acquisition models. However, the structural shift toward autonomous, attritable and scalable systems is increasing the role of specialist defence technology companies, such as the Company. The Company seeks to differentiate itself through sovereign capability, agility, and its unique (for its size) vertically integrated aerospace design/certification/manufacture capability.
Significant cash burn
The company's financials, included in the prospectus, showed it generated revenue of $9.9 million in FY26 and made a net loss of $5.3 million.
The Innovaero Group was founded in 2006, before being formally incorporated in 2020.
The prospectus said:
Since then, its business and activities have evolved and expanded to include the delivery of integrated capabilities spanning complex aerial camera systems, mission-critical defence systems and high-value composite aerostructures for defence, aerospace, and adjacent industrial markets.
Following the capital raising, the executive director, Mike Von Bertouch, is expected to own 27.63% of the company.
