This Drone Stock Quietly Gained 140% on Its IPO… But The Bigger Move Might Still Be Coming From DC

This is a bit of a throwback… Do you remember Tiger Woods in 1997? Just 21 years old, rolling into Augusta like he owned the place, and then actually owning it… winning the Masters by 12 freakin strokes. It was one of those “a star is born” moments you don’t forget. Well, Airo Group Holdings just pulled its Tiger move on Wall Street (and they’re hoping for more than just one major, if you will).

The aerospace and defense company made its stock market debut on Friday and absolutely exceeded expectations… closing the day up 140%. At one point, it was flying nearly 291% higher before gravity kicked in and the stock settled at $24. Not bad for a drone maker that priced its IPO at just $10 per share.   

They raised $60 million in the deal, selling 6 million shares and landing a market cap of around $622 million by the end of the day. At its peak, Airo briefly flirted with a $1 billion valuation. Oh and did I mention they did all this the day after an Israeli strike on Iran rattled global markets. That’s pretty amazing.

Part of the reason it went so well is because Airo’s no ordinary defense contractor. They specialize in military-grade drones… AI-enabled, battle-tested, and already in use across NATO and the European Union. These drones have been deployed in the Ukraine conflict for reconnaissance and targeting and are reportedly tough to shoot down. While they’re not yet armed, Airo’s executive chairman Chirinjeev Kathuria made it clear: “We’re equipped and willing to do that if NATO or the U.S. ask us.”

It’s important to note that this IPO wasn’t their first shot. Airo originally tried to go public back in April, but volatility (aka the VIX) spiked and scared them off. Then came the perfect storm: the VIX cooled, IPOs like Circle Internet and Voyager Technologies crushed their debuts, and public interest in defense tech started trending thanks to geopolitical tensions. Suddenly, Airo was back on the launchpad… and the offering was oversubscribed in less than a day.

Kathuria himself showed strong conviction, signaling he’d personally buy up to $5 million worth of shares in the IPO. And going public was far more than about the cash… though it opens up access to $200 million in financing from the Canadian government and debt markets. The real play here is for credibility. Airo wants to be taken seriously when bidding for those attractive NATO and U.S. Department of Defense contracts.

Also helping the cause was President Trump’s recent executive orders pushing to accelerate domestic drone production and reduce reliance on Chinese imports. 

Now, this might’ve looked like a one-day moonshot, but Airo’s long-term potential could be even more explosive. They plan to begin producing military drones on U.S. soil and get certified to sell them to the Pentagon within six months. Given the recent surge in global defense budgets and the increasing demand for unmanned systems in modern warfare, that timeline could put Airo in a very lucrative spot.

Plus, the world is changing fast. From Ukraine to the Middle East, most drones are proving they’re not very helpful. Investors know that. And that’s why Airo’s ticker… AIRO… might be one to keep an eye on.

At the time this article was published Stocks.News does not hold positions in companies mentioned in article.