Lyntris Inc., a defense-tech firm specializing in sensor technology, experienced a 14% drop in its shares on its first day of trading, closing at $15.01. This performance is below its initial public offering (IPO) price of $17.50 per share. The company, based in Falls Church, Virginia, and a group of its backers sold 17 million shares, collectively raising $297.5 million through a downsized IPO. This offering was significantly smaller than initially marketed, which had aimed to sell shares for $19 to $22 each. According to other reports, Lyntris opened at $15.50 per share, implying an 11% drop from its IPO price at market open.
The company makes systems that integrate sensors, antennas, and proprietary software for military applications, including battlefield sensors for the U.S. and its allies. The IPO valued Lyntris at $1.68 billion based on its outstanding shares. The offering included 5,714,286 shares sold by Lyntris itself and 11,285,714 shares offered by existing stockholders. Lyntris will not receive proceeds from the shares sold by existing stockholders.
The net proceeds that Lyntris receives from the offering, along with existing cash, are intended for general corporate purposes, including additional development efforts, working capital, and operational expenses, and to repay approximately $60 million outstanding under its new revolving credit facility. Evercore ISI, Citigroup, and Guggenheim Securities were among the lead book-running managers for the offering. This IPO is part of a trend of defense companies seeking to list shares in New York, capitalizing on opportunities presented by global conflicts.
