Check out the ASX's newest drone company

A successful capital raise has this company cashed up.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Drone company Innovaero Technologies Limited (ASX: INN) will list on the ASX next week after an initial public offer (IPO) which raised $40 million.

A silhouette of a soldier flying a drone at sunset.

Image source: Getty Images

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.

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

A man has computer-generated images rushing through his head, indicating an AI (artificial intelligence) concept of a communication network.
Technology Shares

Nextdc vs Megaport: Which ASX tech growth share comes out on top?

Nextdc and Megaport are both ASX tech plays—but which offers the sharper growth story right now?

Read more »

Man ponders a receipt as he looks at his laptop.
Technology Shares

Xero shares crashed 59%. What do brokers see next?

Growth, the US opportunity, brokers — all pointing the same direction.

Read more »

A woman sits in front of a computer and does some calculations.
Technology Shares

Codan vs Droneshield shares: Which is the better buy?

Codan and Droneshield are both Aussie tech names, but only one shines in 2026—here’s my verdict on which I’d buy.

Read more »

Army man holding a drone while the army woman holds the remote control.
Technology Shares

DroneShield shares just hit a new low. Is the only way up from here?

Risk-takers may see opportunity here. Others should just watch.

Read more »

a water tap is turned on and showering out banknotes into the open hand of a woman below it.
Technology Shares

This ASX water technology stock could jump 45% Morgans says

This company remains a solid bet despite a recent hiccup.

Read more »

Two women happily smiling and working on their computers in an office
Technology Shares

WiseTech Global vs Xero: Which fallen ASX tech share is the better buy today?

WiseTech and Xero have both fallen heavily from their peaks—but one looks like the better buy to me.

Read more »

Sad man sitting at desk and grabbing his head as he looks at a laptop.
Technology Shares

Are DroneShield shares a buy at their 52-week low?

The share price movement has been brutal, while the underlying business continues converting defence demand into committed revenue.

Read more »

Three small children reach up to hold a toy rocket high above their heads in a green field with a blue sky above them.
Technology Shares

Guess which ASX stock is rocketing 10% today?

A surprise announcement has sent this small-cap stock flying.

Read more »